#064 - Is the Wyckoff BTC Dip Finished, and Will We See a Move to $70K?

Insights from OnChain Data: New Whale Tracking Chart and 4 Altcoins to Watch

At the end of June, I published an analysis in issue #061 on whether Wyckoff patterns can predict the next move.

I was quite happy that bitcoin dipped to $54k.

I’m sure many are asking themselves if the dip is over and if we will see a bullish push to $71k.

Are we going to see another dip?

Let’s find out and see where we are in the BTC Wyckoff pattern and what onchain says about the current market.

Phase C completed. Next phase calls for $70k

I’m surprised how well the Wyckoff re-accumulation overlay aligns with the current price action.

The dip to $53k and the subsequent V-shaped price recovery marked the end of phase C.

Now comes the big question mark. Did we enter Phase D, and will we break above the upper blue resistance line?

One thing is certain. BTC should remain above $66k and maintain that level for the pattern to remain valid.

On the 1-day timeframe, you can see there was a lot of volume between $66k and $68k.

Bitcoin is likely to consolidate there.

One thing that might suggest we see a dip back to the $58k range is the Bitcoin CME Gap in the future. These typically tend to get filled, but there’s no guarantee.

By the way the onchain edge indicator

Major liquidations will happen above 67k and below 65k.

Those can change rather fast but it gives you a picture on where people either want the price to go or definitely don’t want the price to go.

Placing sell orders above short liquidations will get you a good sell price.

In my opinion shorts will get liquidated first

NVT golden cross marked the bottom of the dip

The NVT Golden Cross shared in issue #062 (NVT Golden Cross: The Tool That Predicted Bitcoin’s 85% Surge in January 2024) was a very strong signal that the market had bottomed.

This is like the PE ratio for companies. It makes the most sense to buy when the PE ratio is low.