Bitcoin (BTC) bulls have once again failed to push the cryptocurrency above $60,000, but analysis suggests the asset is likely to rise in the future.
IN TradeView Post published on July 12, Trade Expert TradingShot noted that Bitcoin is preparing for its most aggressive phase.
The expert’s analysis was based on Bitcoin’s cyclical angles and the relative strength index (RSI), which indicate a significant price move in the near future.
The expert illustrated the historical progression of Bitcoin price cycles, each defined by different angles from top to bottom. The analysis revealed a pattern in which each cycle exhibits a decreasing angle.
The first cycle, from 2012 to 2013, was marked by an angle of 54°. The second cycle, from 2015 to 2017, had an angle of 42°, and the third cycle, from 2019 to 2021, showed an angle of 30°.
Based on this model, the current cycle is projected to peak at approximately 20° from the bottom. Despite the declining angles, the weekly RSI has shown remarkable stability.
The RSI of each bull cycle invariably peaks at around 25°, which is a reliable indicator of when to sell and take profits before the next bear cycle begins.
The upcoming take-off phase
The analysis further classified Bitcoin market movements into distinct phases: bottoming, accumulation, and takeoff. According to Trade shot, Bitcoin is currently in the accumulation phase, which suggests that the most aggressive price moves, called the takeoff phase, are yet to come.
“In addition to all of the above, we see that according to the classification of the bull cycle phases, Bitcoin is still in the accumulation phase (blue rectangle), so we have not yet seen its most aggressive part – the takeoff phase,” the expert said.
Indeed, the explanation for the accumulation zone may be related to the current price action of Bitcoin, which has recently consolidated. A breakout of the $60,000 resistance area is the main concern for the bulls.
Overall, Bitcoin failed to benefit from the slowing inflation data after rising to $59,300. The asset’s failure to rise can be attributed to recent supply overhangs related to Mt. Gox creditor payments and the German government’s sale of seized Bitcoin.
Bitcoin Price Analysis
At the time of publication, Bitcoin was trading at $57,986, with daily losses of almost 1%. On the weekly chart, BTC has gained more than 3%.
At the same time, Bitcoin bulls should aim to keep the asset above the $57,500 support. This position would confirm any serious move towards $60,000.
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