Bitcoin [BTC] Price Follows Classic Accumulation Pattern between $6500 and $7800

Bitcoin [BTC] price slid below $7500 after failing two bull attempts in 24 hours. The price exhibited a volatility of around 6% yesterday.  The double-top pattern on Bitcoin [BTC] on the 1-hour chart reaches it first bearish target around $7300.

btcusdBTC/USD 1-hour Chart on Bitstamp (TradingView)

As the bearish trend remains intact, the charts also indicate that the sell-off from scams might have slowed down since December. Nevertheless, it has given rise to more uncertainty in the short-term direction.

Anatomy of the Trading Range

According to chart analyst, TraderXO, Bitcoin [BTC] might be building a classic accumulation pattern – the Wyckoff Accumulation. On a 12-hour chart, the chart seems to be playing this range out between $6500 and $7800.

The price is direction is currently uncertain as we go through the second phase of the move. Hence, the accumulation phase is still on. TraderXO tweeted,

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Trend is down.. Market structure is still bearish.. Accumulation phase yet to play out

The next phase of the pattern will likely reveal the direction of the trade. Going with the trend, there is a higher probability of a bearish accumulation.

bitcoin accumulation phaseWyckoff Accumulation in Bitcoin (Analysis Source: Twitter)

The Bollinger Bands on a daily scale also rejected the bulls from it’s upper resistance levels. The bands are forming a range between $6700 and $7600, which would be important levels for break-out. The bands are squeezing in to build another break-out in price.

The resistance level at monthly opening around $7800 is critical for the bulls as well.

btcusd 1-chart BTC/USD 1-Day chart on Bitstamp (TradingView)

The traders on Okex and BitMEX seem to hold a neutral position at the moment with a faint bullish inclination. The funding rate of these exchange is slightly positive. The volume and open interest on futures exchange increased as the price exhibited high volatility.

The price of Bitcoin [BTC] at 2: 45 hours UTC on 24th December is $7311.

How long do you think the accumulation will go on for? Please share your views with us. 

Summary

Bitcoin [BTC] Price Follows Classic Accumulation Pattern between $6500 and $7800

Article Name

Bitcoin [BTC] Price Follows Classic Accumulation Pattern between $6500 and $7800

Description

Bitcoin [BTC] price slid below $7500 after failing two bull attempts in 24 hours. The price exhibited a volatility of around 6% yesterday.  The double-top pattern on Bitcoin [BTC] on the 1-hour chart reaches it first bearish target around $7300.

Author

Nivesh Rustgi

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CoinGape

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cryptocoach

Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.

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The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.

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