Bitcoin Wyckoff and Elliott Wave predict this next price move

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Bitcoin (BTC) price has been trading in a range between $27,000 and $28,000 since Friday last week, with $27,800 currently the key resistance level to initiate a move to the upside. As recently as last Tuesday, BTC traded above $30,000 before plunging more than 10%.

However, Wyckoff and Elliott Wave analysts agree that the move is not a cause for concern. According to trader and market psychology coach Christopher Inks, a minimum target of $42,350 is expected for Bitcoin as part of the next retracement.

Here’s what the Wyckoff analysis says about the state of Bitcoin

The Wyckoff Method was invented by Richard Wyckoff in the early 1930s and proposes to read the market using causal fundamentals that actually predict market movements. The accumulation and distribution schemes are probably the most popular part of Wyckoff’s work in the crypto and Bitcoin community.

The models break down the accumulation and distribution phases into five phases (A to E), along with several Wyckoff events. Inks writes in his analysis that Bitcoin is most likely in an accumulation according to the Wyckoff method.

“The Elliott Wave count may or may not be correct locally. We want to see an impulsive breakout above the rising red dotted resistance to signal that wave ((ii))’s flat structure may be complete, but a breakout above wave (b) is necessary to add confidence to that count,” writes Inks, who shared the chart below.

If the ink count is correct, another breakout targets the daily pivot. This means that wave ((iii)) of 3 from here has a minimum target of $42,350 per Bitcoin. According to the analyst, this theory is also supported by the fact that the RSI on the daily chart is currently showing a hidden bullish divergence, confirming that it is still complete.

In addition, the Stoch RSI on the daily chart has moved back into the oversold area, so a breakout from the oversold area would further support the assumption that wave ((ii)) is complete, says the analyst, concluding:

We can also note the red parabola. While price remains above the curved line, we should continue to expect higher, overall, rather than a major pullback. Let’s see if we can get that rally from somewhere around this area.

Todd Butterfield of the Wyckoff Stock Market Institute agrees with Inks. In his latest analysis, Butterfield writes that Bitcoin experienced a strong sell-off on low volume last week – as expected.

This is “another low-risk buying opportunity,” according to the renowned analyst. The technometer is at 38.5 for BTC/USD and 40.4 for BTC/USD. Via Twitter, he commented:

Bitcoin has not reached oversold and the price action made me stay on the sidelines for a moment. An oversold Technometer is not a close your eyes and buy, but an indication that we may form a bottom, or due to some sideways/higher.

At press time, the BTC price stood at $27,236, once again moving closer to the lower end of the range, likely for another sweep of the lows.

Featured image from iStock, chart from TradingView.com