Bitcoin’s price has experienced a downward trend throughout June, resulting in a decline of nearly 18% for Q2. However, there are indications from technical chart patterns that Bitcoin’s price could soon break out of its current consolidation phase. The question now is how long this consolidation will last.
According to the Wyckoff method, a technical analysis technique, there are signs that Bitcoin’s price consolidation may be coming to an end. Crypto analyst and CryptoQuant contributor Onchain Edge believes that the Wyckoff pattern and the decreasing Bitcoin exchange reserves suggest that Bitcoin is gearing up for a breakout. On July 2, the analyst stated that Bitcoin’s chart shows a reaccumulation Wyckoff pattern, indicating a potential price increase.
The Wyckoff accumulation pattern is a well-known technical analysis setup named after Richard Wyckoff, a pioneer in the field during the first half of the 20th century. This pattern breaks down the market cycle into four distinct phases.
In addition to the Wyckoff pattern, Bitcoin’s month-long downtrend may have also come to an end. According to popular crypto analyst Rekt Capital, Bitcoin has potentially broken its downtrend after a 7% drop in June. The analyst believes that Bitcoin is forming a bull flag pattern on the daily chart, suggesting further upside momentum.
Based on these technical chart patterns, there is a possibility that Bitcoin’s price could reverse and reach the $90,000 mark in the coming months. Popular analyst Titan of Crypto shared a chart on July 2 showing an ascending triangle formation, supporting this bullish outlook.
However, traders should be cautious of potential selling pressure in July. A German government-labeled wallet, which moved nearly 6,500 BTC on June 19, could contribute to this selling pressure. The wallet recently transferred $52 million worth of Bitcoin on July 2 and still holds over 43,850 BTC worth over $2.75 billion. Additionally, the expected Mt. Gox creditor repayments in early July could also result in selling pressure as investors cash out after waiting for over 10 years to recover their funds.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.