Chart Pattern That Predicted Bitcoin’s Ongoing Rally: More Upside to Come
1 key reason why Bitcoin is poised to move higher is that the hash rate of this network is placing new all-time highs. This, to many analysts, suggests an inherent bull trend.
Published at Mon, 28 Sep 2020 12:00:40 +0000
On-chain trends are in line with the bullish picture painted by this analysis.
While the analysis was not fully accurate in that it predicted Bitcoin would hit $14,000-15,000 in its second leg higher, it was accurate in forecasting the timing and overall directionality of the cryptocurrency.
1 such analyst shared the chart below. It indicated that the cryptocurrency was trading at a macro accumulation pattern popularized by Richard Wyckoff.
That same investigation now suggests that Bitcoin is primed to move higher following the correction and subsequent consolidation.
When Bitcoin appeared as low as $3,500 on March 13th, few expected the coin to bounce back as fast as it did. In fact, at the moment, there were many that claimed that the cryptocurrency was on its way to $1,000 and possibly lower.
This Wyckoff Accumulation analysis suggested that by May or June, the cryptocurrency would hit $10,000, then accurate. This happened. The analysis also predicted that Bitcoin would experience another leg higher after bottoming in July.
There were some, however, that were calling that Bitcoin would experience a rapid reversal.
According to Bitcoinist, there is a confluence of on-chain signs that indicate Bitcoin is primed to move higher on a macro time period. CryptoQuant, a crypto-asset analytics firm, recently shared 10 of these trends. They’re as follows:
Chart from TradingView.com
Chart of BTC’s price action using a a Wyckoff Accumulation evaluation by crypto dealer Coiner-Yadox (Yodaskk on Twitter) from March 2020.