The Bitcoin (BTC) price has been fluctuating between $27,000 and $28,000 since Friday last week, with $27,800 being the most important resistance level to start a move to the upside. However, despite a drop of more than 10% last Tuesday, Wyckoff and Elliott Wave analysts agree that the move is not a cause for concern. According to trader and market psychology coach Christopher Inks, the Wyckoff method predicts a minimum target of $42,350 for Bitcoin as part of its next bounce.
The Wyckoff method was invented by Richard Wyckoff in the early 1930s, and proposes reading the market using causal fundamentals that predict market movements. The accumulation and distribution schemes are probably the most popular part of Wyckoff’s work in the crypto and Bitcoin community. The models break down the accumulation and distribution phases into five phases (A through E), along with several Wyckoff events. Inks writes in his analysis that Bitcoin is likely in an accumulation phase according to the Wyckoff method.
“If Inks’ count is correct, then another breakout has the daily pivot as its target. This means that the wave ((iii)) of 3 from here has a minimum target of $42,350 per Bitcoin. According to the analyst, this theory is also supported by the fact that the RSI on the daily chart is currently showing a hidden bullish divergence, with confirmation that it is complete still pending. In addition, the Stoch RSI on the daily chart has moved back into the oversold area, so a breakout from the oversold area would further support the assumption that the wave ((ii)) is complete,” said a senior analyst.
Todd Butterfield of the Wyckoff Stock Market Institute agrees with Inks. In his latest analysis, Butterfield writes that Bitcoin experienced a sharp sell-off on low volume last week, as expected. This is “another low-risk buying opportunity,” according to the renowned analyst. Butterfield warns that the technometer is not yet oversold, but he believes that the price action will bottom out soon.
Currently, BTC is trading at $27,236, moving once again closer to the lower end of the range, probably for one more sweep of the low. This is a good opportunity for investors to buy the dip and hold on to it as the price is expected to surge in the coming days. According to Inks and Butterfield, Bitcoin has not yet reached oversold, which means there is still time to buy in and wait for the price to rise.
In conclusion, the Wyckoff and Elliott Wave analysts predict a minimum target of $42,350 for Bitcoin as part of its next bounce. The Wyckoff method predicts that Bitcoin is in an accumulation phase, while the Elliott Wave theory suggests that Bitcoin is moving towards a breakout. Both theories suggest that the price of Bitcoin will rise soon. Therefore, investors who have been waiting to buy Bitcoin can take advantage of the current dip and invest in it.
