The accumulation phase for Bitcoin continues as the price struggles to reclaim lost ground

The price of Bitcoin did not exceed the upper limit of 29,640 euros last Monday and is now developing a clear Wyckoff accumulation pattern. As a result, the price has been consolidating in the $ 26,400-32,300 range for almost two months, with such a thin range that anything could happen.

At the time of this writing, the price is currently trading at € 27,145, according to the Cointelegraph price indicator, with a daily profit of + 1.27%.

The accumulation phase for Bitcoin continues as the price struggles to reclaim lost ground
The accumulation phase for Bitcoin continues as the price struggles to reclaim lost ground

As we can see in the previous table, its price has shrunk by -15.12% compared to historic July for Bitcoin.

All of this is happening despite the bullish signals that appeared at the beginning of the month, such as large corporations (Wal-Bitcoin) purchase of 60,000 BTC which drove a rebound in price above € 29,640 on July 4th.

Although it’s too early to point it out The price of the main benchmark of the cryptocurrency market could culminate in red this month, the path so far is similar to the two major losses Bitcoin suffered historically in July 2011 and 2019.

If Bitcoin price followed this course, July 2021 would be the 4th occasion that BTC’s price would close at a loss in the past 10 years.

What can we expect from Bitcoin for the second half of July?

As we have always made clear, due to its small size in billions of euros compared to the traditional stock market, the cryptocurrency market is very volatile and can be easily manipulated by large companies.

An approximation in such a short time (15 days) can therefore be a Russian roulette. Even so, it is possible to use the fundamental analysis and the signals of the main technical indicators to make some approximations of the future behavior of the asset.

As for the basics, they remain intact to this day. Contrary to what we might think, some news about the ecosystem outside of the China FUD regarding mining and tampering that came from the personal accounts of some CEOs on Twitter of successful companies has had a positive vibe in the past few days regarding it the Bitcoin ecosystem and that of course its price. Let’s review some:

  • The most recent, and one that has caused Bitcoin price to rebound in the past few hours, comes from the sources of one of the largest banks in the world: Bank of America. As reported by Cointelegraph, this institution had authorized trading in Bitcoin futures.

  • PayPal announced Thursday that it had increased the cryptocurrency purchase limit for certain US-based customers from $ 20,000 to $ 100,000 per week.

  • The reorganization of China’s miners at new locations and the adaptation to the new rules of the game are seen as an optimistic sign in the medium term, as a recovery in the hash rate can be expected as soon as these actors have established themselves.

  • New on-chain data from Glassnode suggests that the range between € 26,253 and € 28,794 is the largest volume group since the € 10,000

  • There is excessive leverage against traders in “short” ???? based on the latest Glassnode perpetual futures data for the past two months.

The above are just a few of the positive arguments revolving around the market’s leading cryptocurrency for medium-term price rally.

If we look at the chart formed by the BTC / EUR pair last month, we can see that it fits the Wyckoff pattern perfectly: accumulation, uptrend, spread and downtrend.

As we can see, we are out of this cycle, and what seems to be happening again with the main cryptocurrency is a new Wyckoff cycle in which the big players (whales) take a large amount of BTC with them in cold wallets (see BTC- Exit.). Paying outside of the exchanges) in these two months in order to keep the price as low as possible, to buy cheap and to accumulate.

As we have mentioned on other occasions, the cycles are repeating, so it is not surprising that when the price of Bitcoin exits this accumulation phase, it repeats the upward trend, so that it is later distributed to new ATHs, just as it does in in looking for alpha.

Bulls and bears

But despite the “trend” Optimistic in the medium term, the outlook for the rest of July appears to be different. Some respected traders insist on pointing out that if the Bitcoin price was rejected at € 29,640, we could see another drop even below € 20,300 in the short term.

On this line we find Michael Van Poppe who suggested yesterday that in the event that the € 26,253 level is not defended, the Bitcoin price could expect a major setback towards the decline zone below € 20,300.

The popular retailer and influencer Lisa Edwards, for her part, recommended that BTC is currently in a pivotal decision-making stage with a possible pullback before a pivot from current levels, suggesting that the $ 26,500 area is a good time to get in.

For the renowned crypto trader Scott Melker, however, the Bitcoin price could only drop slightly to the end result of 25,406 euros if the current listing level were to lose. According to Melker, what has BTC got from the â ???? tryâ ???? The lower level of support of the descending channel is a great example of the great buying opportunity that price offers in the current ranges.

The opinions expressed in this post are the sole responsibility of author and they have nothing to do with Cointelegraph’s editorial line. Every investment carries risks and requires your own research. This is not financial advice.

Similar Posts