Bitcoin Consolidates Higher as Analysts Describe Recent Price Behavior as “Textbook”
Bitcoin (BTC) saw a consolidation above $26,600 on September 15, with analysts describing the recent price behavior as “textbook.” Despite concerns about inflation, Bitcoin shrugged off the latest macroeconomic data reports from the United States and joined traditional markets in heading higher.
Michaël van de Poppe, founder and CEO of trading firm Eight, expressed optimism that BTC/USD would avoid new lows. In a tweet on September 14, he wrote, “Bitcoin might be able to activate a potential bullish breakout, although we need to make sure that it doesn’t retest the lows again.” He also noted that Germany’s largest lender, Deutsche Bank, had applied for a crypto custody license, which could potentially impact the market.
Van de Poppe highlighted $25,000 as a level for bulls to protect to steer the market away from further downside. He suggested, “We’ve seen a sweep at $25,000 and should be holding up on higher numbers. In that case, we should be holding $25,600–25,900 as beneath there we’ll see a ton of stops to be activated before we can actually see some movements.”
Despite remaining below key moving averages, the 200-week exponential moving average (EMA) continues to act as support for Bitcoin. Van de Poppe stated, “I think that the odds of the low to be in on this cycle have increased. Why? Well, we’re again holding above the 200-Week EMA and most likely will be closing above that again for this one.”
While some experts remain cautious, others take an optimistic long-range view. Trading resource Stockmoney Lizards concluded that further upside for BTC price should come next. Using the Wyckoff method, they compared the past year’s price action to an extended “accumulation” phase, which could signal the beginning of a new uptrend or a return to a previous higher trading range.
For Stockmoney Lizards, the “Spring” in Wyckoff occurred after BTC/USD bottomed out in late 2022. They commented, “We have seen the spring in January, breakout end of March, and now the second throwback. Textbook Wyckoff behavior.”
It’s worth noting that this article does not contain investment advice or recommendations, and readers should conduct their own research when making decisions.
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