Bitcoin’s price has been declining in June, down almost 18% for the quarter. However, there are indications that the current consolidation phase could be coming to an end. Technical analysis using the Wyckoff method suggests that Bitcoin could be gearing up for a breakout. Onchain Edge, a crypto analyst and contributor to CryptoQuant, pointed out that the Wyckoff accumulation pattern and decreasing Bitcoin exchange reserves support this possibility. Richard Wyckoff, a pioneer in technical analysis, developed the Wyckoff method, which breaks down the market cycle into four distinct phases.
Another analyst, Rekt Capital, believes that Bitcoin may have broken its month-long downtrend and is forming a bull flag pattern on the daily chart, indicating further upside momentum. Based on these technical chart patterns, popular analyst Titan of Crypto suggests that Bitcoin’s price could reverse and reach the $90,000 mark in the coming months.
However, traders should be cautious of potential selling pressure. A German government-labeled wallet that moved a significant amount of Bitcoin on June 19 could exert selling pressure. The wallet recently transferred $52 million worth of Bitcoin and still holds over 43,850 BTC worth more than $2.75 billion. Additionally, the upcoming Mt. Gox creditor repayments, expected in early July, could also lead to selling pressure. Approximately $9.4 billion worth of Bitcoin is owed to Mt. Gox creditors who have been waiting for over a decade to recover their funds.
It is important to note that this article does not provide investment advice or recommendations. Investors should conduct their own research and analysis before making any decisions.