Soon after the cryptocurrency experienced a rally that led its price to multi-month highs above $26,000, a well-known cryptocurrency analyst predicted that the price of the flagship cryptocurrency Bitcoin (BTC) could one day reach $1 million in the future. This prediction came just a short time after the rally.
The price increase has given rise to rumors that the cryptocurrency’s bull run is about to begin. Bitcoin is said to have formed the “Wyckoff pattern,” which is a reliable indicator that the bull run has begun, as stated by Aurelien Ohayon, the CEO of the strategy services platform XOR.
It would appear that Wyckoff pattern is referring to the Wyckoff market cycle theory. This theory proposes that asset values move in a cyclical pattern that consists of four separate phases: accumulation, markup, distribution, and markdown.
The model begins with accumulation during a phase that results in a trading range, and then it transitions into a markup phase, which is evaluated based on how steep the new uptrend is. According to Investopedia, pullbacks to new support levels present buying chances and are known as throwbacks. Steeper pullbacks are referred to as corrections, and there may be multiple corrections. After some time, the corrective phases will be unsuccessful in producing new highs, which will indicate the beginning of the distribution phase. This phase is quite similar to the accumulation phase, but it is distinguished from the accumulation phase by the fact that smart money is taking profits and weak hands are left to sell when the range falls in a breakdown and new markdown phase.
The markup threshold for bitcoin has been reached, according to Ohayon’s study. His price charts provide the impression that the most prominent cryptocurrency is well on its way to reaching $1 million in the not too distant future.
According to a report by CryptoGlobe, an analyst by the name of harles Edwards has pointed to a “textbook flawless” pricing trend for Bitcoin, which may imply that the cryptocurrency may move closer to the mark of $100,000 in the future. Edwards, the founder of Capriole Investments, pointed to a pattern known as a “Bump & Run Reversal,” which is distinguished by a price decrease that is followed by a phase known as a “lead-in phase” in which prices move within a tight range.
The asset then makes a sharp ascent, breaking out of its confined range, as the pattern continues. Nevertheless, Edwards also reminded his followers that chart patterns might fail and that they should not be utilized as trading or investing strategies since they are not reliable. Instead, he counseled others who followed him to mitigate the dangers they faced.