Earlier this week, network analyst Willie Wu released a new Bitcoin Pricing Model (BTC). The model determines the beginning of the exponential operation of bitcoin based on historical data. According to the model, Bitcoin can only be one month off the official bull market.
Will the BTC beef market start in July?
Bitcoin price fluctuated around $ 10,000 in February before the Corona Virus pandemic led to a sharp correction in the US stock market. At the time, analysts expected BTC to withdraw, as the price also fell to $ 10500, which is a major level of resistance.
Surprisingly, Bitcoin's price dropped quickly, dropping below $ 6,000, and eventually dropping to an annual low of $ 3,600 on BitMEX. This caused chaos in the cryptocurrency market, as liquid positions valued at more than a billion dollars were liquidated.
According to Wu, Bitcoin was put on the beef market before the coronavirus pandemic affected nearly all risk markets. Wu's new model, which precisely marked the start of four previous bullish rounds, indicates that Bitcoin is preparing for another hike in the near future.
“This is a new model I'm working on, it marks the start of exponential races. 1) Bitcoin was getting ready to run until the White Swan COVID killed the party. 2) This model assumes we're close to another hike. Maybe another month.”
If Bitcoin's price remains stable for a longer period, Wu said it could boost the next breakout. Additionally, Bitcoin has shown relatively low volatility for more than a month, protecting a support level of $ 9,000.
The analyst explained:
“The longer this beef market grows, the higher the price (Top Cap). Long lateral knitting is finally a good thing.”
A long period of consolidation below the multi-year resistance level, such as $ 10500, is often seen as a positive factor as it appears that buyers are trying to break above a key level, but there is not enough pressure from sellers to resist it.
Additional factors indicate climb
Since March, Bitcoin has risen from a range of less than $ 4,000 without a major correction, and traders have defended key support levels at $ 5,800, $ 6,500, $ 8,100 and $ 8,600.
Cryptocurrency trader Nonia Businesses said that the structure of the bitcoin market remains unchanged, despite the recent decline in bitcoin price developments. The analyst said:
“The trend has become more of a sideways pattern and has recently seen some shrinkage. However, the market structure has not changed. A series of higher declines has not been destroyed. Is this pattern continuing?
It is important to remember that despite today's adjustments, Bitcoin price remains in trend, even as it moves sideways during the consolidation phase. This combination of overall bullish factors and the stability of key Bitcoin support levels increases the likelihood of a strong beef market in the medium and long term.