Bitcoin Reclaims $100,000 Mark Amidst Bullish and Bearish Predictions

Bitcoin, after briefly trading below the $100,000 mark, has since reclaimed this level, indicating a potential for both a rally and a fall. The Wyckoff pattern, a technical analysis tool, has been used to predict four possible outcomes for Bitcoin's next move. One of these outcomes is bullish, while the other three are bearish.

The bullish scenario, known as the “Delay Cycle” and the “Altcoin Rally opportunity,” suggests that Bitcoin will enter an accumulation and redistribution stage. During this phase, Bitcoin is expected to consolidate within a defined support and resistance range, providing the momentum for a rally that could reach between $140,000 and $146,000 in October. This consolidation phase is also likely to trigger an Altcoin season, with many of these assets trending higher, potentially starting in July.

The three bearish scenarios involve significant pressure on investors or traders with open positions, as price movement will primarily target liquidity zones. The first bearish scenario shares similarities with the bullish case, involving similar consolidation. However, instead of breaking out above the resistance level, Bitcoin would plunge below, breaching the support of the consolidation range. The other two bearish scenarios involve price trading into the resistance level only once. In one of these scenarios, the asset reacts to resistance above and then moves sideways in a tight range before ultimately breaking down. In the final case, Bitcoin maintains a bearish stance and experiences a sharp drop, with minimal consolidation along the way.

Analyst Jao Wedson notes that one scenario is critical in determining Bitcoin’s neutrality. “The most interesting of the four scenarios is the first one: if confirmed, it reinforces that BTC continues to follow its natural cycles, regardless of market narratives.”

Despite the uncertainty, investors have started accumulating BTC in large volumes. At the time of writing, around 1,400 BTC, worth approximately $141 million, has been purchased and moved into private wallets. This coincides with a significant drop in Bitcoin Exchange Reserves, suggesting that less BTC is available on exchanges. Lower Exchange Reserves could lead to a supply squeeze, which may drive the asset’s price higher over the long term.

Bullish sentiment is also starting to reflect in the derivatives market. The Taker Buy/Sell Ratio on CoinGlass has risen and at press time sits at 0.98. A ratio above 1 would indicate that buy volume is exceeding sell volume in derivatives, reinforcing the growing bullish momentum.