After a mixed day for the crypto majors on Wednesday, Bitcoin and the larger crypto market have had another gloomy morning.
Since May, the structure of BTC price movement resembles a Wyckoff accumulation pattern. While Wyckoff accumulation continues, Phase D is the next step.
Phase D is the current phase Bitcoin is in, and as with the previous spring and test, the price action has moved on with the price action holding above the support. It is now the phase where smart money and whales have accumulated and the price is about to go higher, but many traders still believe the price-action will cause further bearishness and lower lows.
Last week, BTC price movement showed a false break, as it broke the recent low of $29,500 and went lower to $28,200 before producing a sharp turnaround. This is a bearish move that usually leads to a delayed price recovery.
As critical support levels fail to deliver, Bitcoin bears will be looking for a return to sub-$30,000 levels. After being rejected at $36,000, the price is retesting support near $34,000. According to the Wyckoff accumulation pattern, a daily close above $33,500 is required before teleporting to $42,000.
- Key support levels – $33,000, $31.600
- Key resistance levels – $36,000, $39,100
At the time of writing Bitcoin was trading at $33,353.52.
The final phase, which will occur in the near future, is phase E, which is the point in the Wyckoff accumulation where the general public becomes aware of the likelihood of further bullish continuation to the upward.