The Wyckoff Accumulation indicator for Bitcoin seems to be accumulating right now and LPS might be pointing to a big up move.
Several analysts pointed at $61,500/$61,800 as a temporary pullback before a return to $71,500 that would result in a short squeeze.
Wyckoff accumulation seems to suggest that the cryptocurrency is in Phase E, which means that accumulation is over, and it is about to be bullish.
Bitcoin, at this time, seems to be within the final stages of a Wyckoff Accumulation pattern where the bulls have been observed to pull back at the Last Point of Support (LPS). The upside was expected to be part of the bigger picture of a long accumulation structure before the market barrels ahead again.
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Technical indicators predicted that the next resistance level could be at $71,500 with a minor dip towards the $61,500-$61,800 before that. Because the short-sellers are now potentially cornered, this cryptocurrency can easily ‘rocket’ upwards.
Wyckoff Accumulation Phases
The Wyckoff Accumulation model breaks market movements into several distinct phases: A, B, C, D, and E. The Bitcoin row has demonstrated Phases A to D, with multiple tests of support levels and relatively small rebound. Growing anticipation for LPS is observed among traders as Phase E moves closer, typical of a pullback in prices before the ramping up in the face of similarly shot up demand. This phase is very important for defining the end of the accumulation phase with the beginning of a period characterized by a strong positive trend.
Price Levels,Market Sentiment and Trapping Shorts
The support level has been recently popular is the one ranging between $61,500 and $61,800. Experts said this area is a low liquidation zone which will cause short-term sellers to get caught and lead to a turnaround. After this potential liquidation, Bitcoin price could head towards $71,500. This level is a major resistance and this should prove a major hurdle for Bitcoin as it tries to push up towards new highs. If the price enters this level, then there is a chance for further increase in the price for the security.
The Wyckoff Accumulation often operates through systematizing of speculative holdings and entrapping those who are over borrowed. In this case, the expected steep rise from $61,500 to $71,500 might collapse the short sellers. If the price retreats even a little, more bears may open new short trades, but they will be caught off guard by a sharp upward move high, to describe conditions for a relatively fast rise in Bitcoin’s prices.
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