Some members of the digital currency community believe that an historical technical analysis is a signal that the value of Bitcoin could be heading north pretty soon.
Methods of Historical Technical Analysis – Wyckoff Method
According to a publication by a Reddit user, the value of bitcoin could be reflecting the hypothetical chart of a strong price reversal.
Bitcoin (BTC) Price Today
The chart used by the user was gotten from the teachings of Richard Wyckoff, from the early 1900s.
According to the chart, the digital currency could experience a spike in its value within the next couple of days. For those that are not aware, the Wyckoff method utilizes various scenarios and laws to try to predict the price changes of an asset that is traded publicly.
The technical analysis community members have largely accepted the methods of Wyckoff, and Wyckoff is one of the most respected historical figures on Wall Street. To achieve the earlier mentioned bullish scenario, the digital currency will need to continue to rally over the next couple of days, breaking above its major resistance levels.
The Resistance Level of Bitcoin
The major resistance of the digital currency may lie at the $7,800 mark, which is about $1,200 away from its present value – according to Robert Sluymer (an analyst at FundStrat).
Nevertheless, a lot of Reddit users were criticizing this technical analysis, calling it bogus.
The Bullish Sentiment Continues
These Reddit users might be onto something, as it might be a coincidence that the chart of Wyckoff matches the price action of bitcoin. On the other hand, it could be drawing timely and accurate parallels between historical technical analysis and the volatile digital currency market of today.
Digital currency analysts such as Robert Sluymer and Tom Lee still believe that BTC is set for a bull run in the next couple of weeks. Some days ago, Lee said the value of bitcoin will get to $25k by the end of this year.
Bitcoin is presently hovering over the support level at $6,500, and only time will tell if all these predictions will come to pass.