Bitcoin bulls continue to strongly defend $25,000. BTC price is showing ‘Wyckoff textbook’ movements, according to analysts. Bitcoin analysts increasingly believe that this cycle has seen the BTC price hit its lows.
Popular analyst does not expect new lows for BTC
Latest data shows that the leading cryptocurrency is focused on $26,600 below a major breakout level. As you follow from Kriptokoin.com, Bitcoin shook off the latest US macroeconomic data reports the day before. Despite hints that inflation is more stubborn than expected, BTC has rallied, joining traditional markets. Amid renewed bullish sentiment, Michaël van de Poppe, founder and CEO of trading firm Eight, remains hopeful that BTC will avoid new lows.
In this context, the analyst said, “Bitcoin could activate a potential bullish breakout. “But we need to make sure it doesn’t retest the lows.” says. Meanwhile, Germany’s largest lender, Deutsche Bank, has applied for a crypto custody license. Referring to this news, the analyst sees $ 25,000 as a level where the bulls will direct the market. In this regard, the analyst makes the following statement:
We saw an uptick near $25,000 and we should hold higher. In this case, we should hold $25,600-$25,900. Because underneath that, we’re going to see a ton of stops that will be activated before we actually see some of the moves.
BTC 1-week chart with 200 EMA. Source: TradingViewBitcoin analyst: September is not a month!
Despite remaining below the cluster of major moving averages (MA), the 200-week exponential moving average (EMA) continues to act as support. BTC regained this level in March. This is also an important feature at the beginning of any bull market. Michaël van de Poppe comments:
I think the probability of a bottom is increasing in this cycle. You ask why? Because we are holding it above the 200 Weekly EMA again. We will probably close on this this time too. September is not ‘rectember’. It looks like we’ll continue from here.
BTC annotated chart. Source: Michaël van de Poppe/The analyst emphasizes that BTC must break the previous day’s high of $26,800.
Wyckoff reveals classic BTC price recovery
Meanwhile, trading resource Stockmoney Lizards, which takes an optimistic long-range view, likewise concludes that the BTC price must rise further. Using the Wyckoff method, the analyst compares last year’s price action to an extended “accumulation” phase.
This describes the price cycles of an asset. Additionally, correctly identifying the trigger after a swing low in Wyckoff, known as the “Spring”, can reveal the beginning of a new uptrend or a return to a previous higher trading range. Spring for Stockmoney Lizards occurred after Bitcoin bottomed out in late 2022. In this regard, the analyst makes the following assessment:
We saw spring in January, the breakout at the end of March, and now the second reversal. This is textbook Wyckoff behavior.
BTC comparative chart. Source: Stockmoney LizardsBitcoin price is poised to rise
Crypto analyst David evaluates BTC’s technical outlook as follows. The weekly chart shows that BTC has completed an inverse head and shoulders formation. It also reveals that it successfully confirmed the neckline as support during the week of June 12-19 (yellow arrows). This helped the price rise sharply to the key resistance zone at $31,500 the following week. Although it later faced rejection, such a strong recovery suggests sentiment has shifted from selling on rallies to buying on dips, creating a cycle lower for Bitcoin at $15,500 in November 2022.
Currently, BTC is once again recovering from the neckline of the inverted head and shoulders formation. It is also forming a bullish pin bar candlestick (green arrow). If successful, it will confirm the latent bullish divergence in the weekly RSI. This will often be a bullish signal, leading to a continuation of the uptrend. If this happens, Bitcoin will move towards the formation target of $35,000, which is calculated by connecting the height of the formation to the breakout point.
BTC weekly chart. Source: TradingView
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