Fun

Bitcoin price loses $60K, but a maturing Wyckoff signal gives hope

News Feed - 2024-08-05 12:08:00

Yashu Gola8 hours agoBitcoin price loses $60K, but a maturing Wyckoff signal gives hopeThe bullish outlook appears despite the ongoing Bitcoin sell-off, which is being led by the growing risks of a recession in the United States.14070 Total views25 Total sharesListen to article 0:00Market AnalysisOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onBitcoin (BTC) is down over 4% in the past 24 hours, falling below $60K. However, a retest of $74,000 in the coming weeks is possible, at least based on a maturing Wyckoff reaccumulation pattern and increasing odds of three rate cuts by 2024’s end.Bitcoin is testing key spring support


The Wyckoff reaccumulation pattern is a technical setup that identifies phases of consolidation and accumulation after a prolonged uptrend.


In this pattern, the price typically goes through nine critical phases, namely Preliminary Supply (PSY), Buying Climax (BC), Automatic Reaction (AR), Secondary Test (ST), Spring, Test, Last Point of Support (LPS) and finally, the Sign of Strength (SOS).Wyckoff re-accumulation pattern illustration


As of Aug. 4, Bitcoin had entered the "Test" phase of its Wyckoff re-accumulation pattern.


In this phase, the cryptocurrency is testing its Spring phase low—at around $53,400—as support to confirm bullish continuation toward its new Last Point of Support (LPS) at around $70,000, as shown in the chart shared by independent analyst Moustache on his X channel.Bitcoin"s Wyckoff re-accumulation pattern illustration. Source: Moustache


According to the Wyckoff re-accumulation rule, a new uptrend cycle will begin when Bitcoin enters the ninth and final stage, called the Sign of Strength (SOS), after retesting the Wyckoff pattern"s peak level of around $74,000.


This final stage signals strong upward movement and market strength, indicating a confirmed uptrend.Three rate cuts possible in 2024 amid recession risks


Bitcoin’s price has slid 10% alongside the US stock market since Aug. 1, when the US reported unemployment claims hitting an almost one-year high and declining manufacturing activity. Bitcoin exchange-traded funds (ETF) have witnessed circa $200 million in withdrawals in the same period.BTC/USD versus Nasdaq 100, S&P 500, and Dow Jones daily performance chart. Source: TradingView


Interestingly, BTC"s decline appears despite increasing odds of three rate cuts in 2024 instead of one, marking a significant departure from the trend observed over the past year, where crypto markets often welcomed weak economic data.


Related: Bitcoin whale volume from exchanges hits 9-year high as analysts call BTC price bottom


This decline is likely driven by rising recession alerts following the latest US jobs report.


Historically, Bitcoin has struggled during periods of heightened recession fears. For example, during the COVID-19 market crash in March 2020, Bitcoin fell in tandem with the US stock market. Bitcoin’s price began to rebound when the Federal Reserve implemented quantitative easing and rate cuts.Source: X


Numerous crypto analysts, including Michael van de Poppe, see a similar price trend in the coming weeks. In other words, Bitcoin will face recessionary risks but rebound after the Fed implements its rate cuts in September.


This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.# Bitcoin# Bitcoin Price# Bitcoin Analysis# Economy# Markets# Interest Rate# Tech Analysis# Market AnalysisAdd reaction

News Feed

Bitfinex Swears It’s Trying Super Hard to Block US Bitcoin Traders
Beset with allegations that it is flouting regulations by allowing US bitcoin traders to access its platform, cryptocurrency exchange giant Bitfinex promised that it’s trying super hard to stop that from happeni
Goldman Sachs Downgrades Coinbase to Sell Rating — Analyst Says Firm Needs to Make Cost Base Reductions
Goldman Sachs Downgrades Coinbase to Sell Rating — Analyst Says Firm Needs to Make Cost Base Reductions Analysts from the multinational investment bank and financial services com
Solana’s first gaming SVM surpasses 1M monthly active users
Zoltan Vardai10 hours agoSolana’s first gaming SVM surpasses 1M monthly active usersDespite the significant milestone, Web3 gaming still needs more “soft” infrastructure for mass adoption, according to Sonic’s CE
Lebanon Fights for Separation of Money and State as Residents Use Bitcoin to Evade Capital Controls
Lebanon Fights for Separation of Money and State as Residents Use Bitcoin to Evade Capital Controls Mass unrest in Lebanon due to allegations of political corruption and heavy ha
Savannah Fortis5 hours agoUniversal Music Group sues Anthropic AI over copyright infringementUniversal Music Group, Concord Publishing and ABKCO Music & Records allege that Anthropic “unlawfully” copied and disse
How to Leverage Uniswap – Ethereum’s Noncustodial Defi Trading Platform
How to Leverage Uniswap - Ethereum"s Noncustodial Defi Trading PlatformIn 2020 decentralized exchanges (dex) have grown quite mature compared to just a few years ago. One specific d
Aave contemplates fee distribution in DeFi shake-up
Amaka Nwaokocha53 minutes agoAave contemplates fee distribution in DeFi shake-upThe fee switch will allow governance to control and adjust fee-related policies based on the platform’s needs and objectives.260 Total vie
Sri Lanka Appoints Committee to Draft Digital Currency Policy, Seeks Crypto Investments
Sri Lanka Appoints Committee to Draft Digital Currency Policy, Seeks Crypto Investments In preparation to regulate its fintech space, the government of Sri Lanka has established a
Spain Modifies Tax Model 720, Used to Declare Cryptocurrency Holdings Abroad
Spain Modifies Tax Model 720, Used to Declare Cryptocurrency Holdings Abroad The Spanish parliament has introduced an amendment to the tax model 720 used to declare cryptocurrency
Ethereum Price Prediction: Extremely Strong Support And Monthly 55 EMA Says ETH Is Headed For $4,867
Este artículo también está disponible en español. Ethereum has yet to returnto its all-time high for over three years, a stark contrast to Bitcoin, which has surged past
Bitcoin May Hit $78,500 If This Critical Support Fails – Details
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Red Bull Racing Partners With Bybit, F1 Team Says It’s the ‘Largest per Annum Crypto Sports Deal to Date’
Red Bull Racing Partners With Bybit, F1 Team Says It"s the "Largest per Annum Crypto Sports Deal to Date" Red Bull Racing (RBR) has announced the cryptocurrency exchange platform B