Bitcoin Price Stopped at $31,500, Correction Coming For almo | Global CRYPTO News
Bitcoin Price Stopped at $31,500, Correction Coming
For almost two weeks now, the price of bitcoin has been trading in a tight range with little sign of a breakout, but a closer look at price action points to a possible sharp correction.
The price of Bitcoin has formed a clear Wyckoff distribution pattern, and there are several distinct parts to this setup: the local top formed on June 21st, which is the Initial Supply where the selling took place.
After the formation of the Initial Supply, the bulls pushed the price of bitcoin to form a buying climax. As investors take profits after this surge, there was a pullback that formed an automatic reaction.
An unsuccessful attempt at another rally led to the formation of a secondary test. Now a failed selloff forms a Sign of Weakness. What follows is a classic sign of early bull manipulation or trapping due to upthrust over a buying climax. This phase is followed by the Upthrust after distribution phase, which are two places where the smart money offload their assets.
Therefore, after the Upthrust after distribution, the asset undergoes a steep correction.
With the price of bitcoin trading around $30,500, investors should expect two scenarios - a sudden sell-off from the current position, or a surge to a high of $31,500 followed by a correction. In both cases, the bear target is $28,138, which is the midpoint of the 27 percent gain seen between June 15 and 23.
In some cases, the decline could push the price of bitcoin towards the 62% retracement level at $27,331 or the 70% retracement level at $26,760. Overall, BTC can be expected to fall from 8.66% to 15% in the coming days.
