A famous cryptocurrency expert has predicted that the price of the flagship cryptocurrency Bitcoin ($BTC) might reach $1 million in the future, following a surge that saw the cryptocurrency hit multi-month highs above $26,000.
The surge has fueled anticipation that the cryptocurrency’s bull run has begun. Bitcoin has established the “Wyckoff pattern,” which is regarded a strong sign that the bull run has begun, according to Aurelien Ohayon, CEO of strategy services platform XOR.
The Wyckoff pattern appears to be a reference to the Wyckoff market cycle hypothesis, which proposes that asset values move in four separate phases: accumulation, markup, distribution, and markdown.
The model starts with accumulation in a phase that creates a trading range, and then moves on to a markup phase, which is measured by the slope of the next upswing. Pullbacks to new support levels provide buying chances, and stronger pullbacks, known as corrections, may occur, according to Investopedia.
The corrective phases eventually fail to yield new highs, signifying the onset of the distribution phase. This phase is similar to the accumulation phase in that smart money takes profits while weak hands sell when the range collapses in a breakdown and new markdown phase.
According to Ohayon’s study, Bitcoin has reached the markup threshold. His price charts appear to indicate that the flagship cryptocurrency is on course to reach $1 million in the near future.
According to CryptoGlobe, one analyst, harles Edwards, has identified a “textbook flawless” Bitcoin price trend that might suggest a future climb toward $100,000. Capriole Investments’ creator, Edwards, alluded to a “Bump & Run Reversal” pattern, which is defined by a price decrease followed by a lead-in phase in which prices move in a limited range.
The asset then shoots higher to exit its tight range, completing the pattern. Nevertheless, Edwards warned his followers that chart patterns might fail and should not be utilized as trading or investing strategies. Instead, he counseled his followers on risk management.
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