Historically bullish Bitcoin chart pattern – Upward potential
In March, few would have thought that Bitcoin would be where it is today.
The Coin rose since the lows in March over 200% – which shows that the crypto market is not dead still for a long time.
When the lows were reached, some feared that crypto-currencies would not exist for much longer.
However, some analysts predicted Bitcoin Code continuing rally.
One of these analysts predicted that the crypto currency would test $10,000 again by May, just months after the crash.
The chart pattern he used to predict this price action now suggests that Bitcoin has room to expand upward.
Another trader who predicted the rapid recovery of the Bitcoin price reflects this assessment.
Bitcoin has further upside potential: textbook chart pattern
When Bitcoin crashed to $3,500 on March 13, only a few expected that the coin would bounce back so quickly. In fact there were many at that time, which were the opinion, the Kryptowährung was on the way to 1.000 $ and possibly still under it.
But some held to their belief that Bitcoin would experience a quick reversal.
One of these analysts shared the chart below. He suspects that the crypto currency has been traded in a so-called macro-accumulation pattern.
This wyckoff accumulation analysis indicated that the crypto currency would reach $10,000 in May or June and then correct. This is what happened.
The analysis also predicted that Bitcoin would continue to rise after its July low. That also happened.
Although the analysis was not entirely accurate in predicting that Bitcoin would reach $14,000 to $15,000 higher in its second period, it was accurate in predicting the timing and general direction of the crypto currency.
The same analysis now suggests that after the correction and subsequent consolidation, Bitcoin is ready to move higher.
Chart of BTC’s price development with a wyckoff accumulation analysis of the crypto trader Coiner-Yadox (Yodaskk on Twitter) from March 2020.
On-Chain-Trends draw a similar picture
The trends in the chain are in line with the bullish picture painted by this analysis.
For example, there is a coincidence of on-chain signs that Bitcoin is prepared to move up in a macro time frame. CryptoQuant, a crypto-asset analysis company, recently shared 10 of these trends. They are as follows:
- Miner position index
- Puell multiple
- Hash tapes
- Mean value of all stock exchange outflows
- Reserve for all Exchanges
- Ratio of supply of Stablecoin
- All exchanges Stablecoin reserve
- MVRV ratio
- Network value to Metcalfe ratio
- Stock to Flow
One of the main reasons why Bitcoin should continue to rise is that the hash rate of the network is reaching new record highs. For many analysts this indicates an underlying upward trend.