Bitcoin price has the potential to hold above $9,000 as per the signals of the MACD and the RSI.
After a period of holding above $9,200, Bitcoin dropped on Thursday to test support at $9,000. This time, buyers were keen on averting losses into the $8,000’s range. BTC/USD made a shallow bounced upwards, stepping above $9,100. However, the largest digital asset is trading at $9,130 following increased selling activity towards $9,200.
In spite of the breakdown witnessed, market volatility remains low. On the other hand, a popular technical analyst believes that Bitcoin could soon hit $11,000 as long as the Wyckoff schematics (technical indicators) play out as expected. The indicator was developed by Richard Wykoff and says that all markets trade in predictable patterns. Therefore, traders have higher chances of profitability, especially if they highlight the patterns early enough.
The analyst points out that Bitcoin is in the middle of a Re-Accumulation. This pattern is usually observed in classical middle uptrends. BTC/USD is in the “creek” phase of the pattern. Continuous action above within the pattern could place Bitcoin in a trajectory where it will be poised for a rally to $11,000 (see chart below).
Bitcoin consolidation movement in the last several weeks had driven most people on the edge. In fact, many are choosing to remain bearish, unlike the above analyst. However, during the crash to 3,800 in March another analyst used the Wykoff schematics to predict Bitcoin price reversal saying that it was trading in a Re-Accumulation pattern and not distribution. Some analysts are choosing to believe is struggling to hold in the Re-accumulation and would retreat to distribution thereby paving the way for a serious breakdown.
“BTC: Struggling to see the case for re-accumulation as opposed to distribution. If there is one its very weak. Volume profile is quite telling throughout this whole range.”
For now, Bitcoin has the potential to hold above $9,000 if not $9,100. The MACD is moving sidelong at the midline. The RSI reacted to the drop on Thursday but is currently holding at 45. With low trading volume playing out, less rapid price actions are expected in the near term.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at firstname.lastname@example.org