The recent evolution in the price of Bitcoin has validated our projections according to the Wyckoff methodology. The leading cryptocurrency has experienced a notable jump in Back-Up (BU), confirming expectations of a significant advance in its value. In this analysis, we will examine the recent development and what this could indicate for the future of Bitcoin.
As we anticipated, Bitcoin has made the long-awaited leap in Back-Up (BU), catapulting from 27,000 to an impressive 30,700 in just the first two days of this week. This move demonstrates the underlying strength of the cryptocurrency.
This significant advance in Bitcoin price suggests a possible continuation of the uptrend in the coming days and weeks. However, volatility in the cryptocurrency market continues to keep investors on edge. Bitcoin, as always, plays a leading role. After reaching a peak of $30,700, the cryptocurrency has seen a correction and currently stands at $28,434.
The current level of $28,434 is notable as it coincides with the convergence of two crucial moving averages: the 200-period Moving Average and the 20-EMA (20-period Exponential Moving Average). This level serves as a significant test to verify whether these moving averages will effectively support the uptrend or if the market will again seek liquidity at the 50-period Moving Average.
Structural Support and Bullish Accumulation Rally
The 50-period Moving Average not only represents a technical support line, but also coincides with the structural support formed by the bullish rally of the accumulation phase. This point is of particular importance, as it was here that the Back-Up (BU) was generated that marked the beginning of the current bullish movement.
Implications for Investors
At this time, investors should keep an eye on Bitcoin's reaction at the current level. A successful bounce from here could indicate a confirmation of the uptrend. However, a fall below this level could signal greater weakness in the trend that would not lead to a retest of the BU/LPS 25,000UDS level.
