Is the Bitcoin Bottom In? Top Crypto Analyst Outlines Potential Path Ahead, Issues Weekly Close Warning
It’s crunch time for Bitcoin and the crypto markets, according to a popular analyst.
The pseudonymous trader known as Capo tells his 140,000 Twitter followers that Bitcoin may still be in a Wyckoff accumulation pattern, with BTC setting itself for a big move to the upside when the pattern completes.
The Wyckoff method is a technical analysis approach that aims to identify whether big-money investors are accumulating or selling an asset. An accumulation pattern highlights a period where institutional investors are controlling an asset’s price in an effort to buy at discounted prices.
According to Capo, Bitcoin may be forming a near-perfect Wyckoff schematic #2, implying that the bottom is almost in for the world’s biggest crypto asset by market cap.
“I am convinced that this is accumulation. Do you really think that the majority will get $25,000 or $20,000?”
Capo also puts the spotlight on the prolonged negative funding rates, as well as the lack of a sell signal from the widely-followed Puell Multiple indicator as reasons to be bullish.
$BTC funding & premium
Another reason I’m bullish is because funding and premium have remained negative throughout this range.
The Puell Multiple indicator showed a buy signal some days ago. pic.twitter.com/tigu40eK7M
— il Capo Of $NOIA (@CryptoCapo_) July 19, 2021
The crypto analyst points out that the Puell Multiple – which divides the daily issuance value of BTC by a 365-day moving average of daily issuance value – hasn’t yet flashed the typical top signal that it formed in previous bull markets.
Though Capo maintains his bullish stance on Bitcoin, he cautions that if BTC finishes the week under $30,000, things could get ugly.
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