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A popular cryptocurrency analyst has suggested that the price of the flagship cryptocurrency Bitcoin ($BTC) could reach $1 million in the future, shortly after the cryptocurrency saw a rally that led its price to multi-month highs above $26,000.
The rally led to speculation that the cryptocurrency’s bull run is in play. According to Aurelien Ohayon, CEO of strategy services platform XOR, Bitcoin has formed the “Wyckoff pattern,” which is considered a reliable indicator that the bull run has kicked off.
Wyckoff pattern seems to refer to the Wyckoff market cycle theory, which suggests that asset prices move in a cyclical pattern of four distinct phases: accumulation, markup, distribution, and markdown.
The model begins with accumulation in a phase that generates a trading range, and is followed by a markup phase, measured by the slope of the new uptrend. Pullbacks to new support levels offer buying opportunities, known as throwbacks, and there may be steeper pullbacks, called corrections, according to Investopedia.
#BITCOIN BULL RUN BEGINS.
Wyckoff pattern pic.twitter.com/EGmaZX6BX9
— TAnalyst (@AurelienOhayon) March 14, 2023
Eventually, the corrective phases fail to generate new highs, signaling the start of the distribution phase. This phase is similar to the accumulation phase but is marked by smart money taking profits and leaving weak hands to sell when the range fails in a breakdown and new markdown phase.
As per Ohayon’s analysis, Bitcoin has hit the markup level. His price charts seems to suggest that the flagship cryptocurrency is on track to hit $1 million in the future.
As CryptoGlobe reported one analyst, harles Edwards, has pointed to a “textbook perfect” Bitcoin price pattern that could indicate a move toward the $100,000 mark in the future. Edwards, the founder of Capriole Investments, pointed to a “Bump & Run Reversal” pattern, which is characterized by a drop-off in price followed by a lead-in phase where prices move in a narrow range.
The pattern then sees the asset shoot upward to leave its narrow range. Edwards, however, also cautioned his followers that chart patterns can fail and should not be used as trading or investment plans. Instead, he advised his followers to manage their risks.
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