Bitcoin is selling fast. By virtual standards, the world’s most valuable coin fell by more than 5 percent in the last trading day and continues to fall, easily breaking $60,000. The psychological cycle number has been a level to watch over the past few days, especially following the gains over the weekend.
Bitcoin Down: Is It Time To Buy?
Although Bitcoin is declining and traders are not getting tired, one analyst thinks this is the right time to stock up. In a post on X, the commentator he argues that Bitcoin is at the top of the “Spring” stage within the Wyckoff re-accumulation model.
The Wyckoff model is a technical analysis tool used by traders and charts. Traditionally, it uses price and volume patterns to identify potential price movements.
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Although Wyckoff describes many phases when it comes to price patterns, the “Spring” phase is what many traders keep track of. When prices “spring” higher from this stage, the coin tends to break out of the current range after increased trading volume.
If you look at the daily chart of Bitcoin, it can be seen that the prices have been consolidating. So far, the main support has been around the lows of May and June 2024. Then, the prices dropped, dropping below $57,000 and dropping to around $56,500 in May. Resistance lies between $72,000 and the March 2024 high.
As it stands, Bitcoin is retesting key support, with the July 4th bar piercing $60,000 and falling as low as $56,900 earlier today. Based on the Wyckoff model, prices are ahead in the spring phase. This preview will hold, especially if there is no guarantee of today’s loss.
Miner Holds Hand Although Longtime Owners Are Not Selling
While the analyst is bullish, not everyone is bullish. According to Willy Woo, an on-chain analyst, the current sales are mainly carried on given by the miner. Looking at Bitcoin Hash Ribbons, the decline seems to be starting as the market weeds out “weak” miners.
Since the April 20 Halving, the Bitcoin network has automatically halved BTC rewards to 3.125 BTC. This automated transportation put a lot of pressure on the miners, who have to invest in gear and work efficiently. With falling income, only successful miners have a chance to operate profitably.
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Because of this, those who cannot upgrade their gear are forced to leave the scene. If they don’t, they will work without a chance to win block rewards regularly. Eight months ago, the on-chain data exhibitions that miners have been extracting BTC, resisting the rise in Q1 2024 and worsening the correction since April.
Meanwhile, long-term holders, especially institutions and whales, stop selling in mid-January 2024. Then, the United States Securities and Exchange Commission (SEC) approved the first Bitcoin exchange-traded fund (ETF).
As evidence, Bitcoin’s “illiquid supply,” which indicates the number of coins that have not been moved for more than two years, is almost too high.
Insert image from DALLE, chart from TradingView
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