Bitcoin (BTC) kept traders guessing with rangebound action on June 30 after a push beyond $37,000 resistance ended in rejection.
Wyckoff stresses $32,300 support
Data from Cointelegraph Markets Pro and TradingView showed a day of reversal for BTC/USD on Wednesday, the pair down 4.5% hitting $34,500.
After accelerating upwards the day before, Bitcoin ran out of steam at $36,630 to begin a retracement which erased most of its gains.
For popular trader Crypto Ed, even the run higher was lacking in substance, and after the subsequent correction, a bounce was sorely needed to preserve the bull case.
“Stronger move down=start of move to green,” he added as part of comments alongside a chart showing a downside target of $26,900.
Others heralded the Wyckoff price analysis method, currently popular for Bitcoin, as providing key insights into where the short-term direction could be going.
Fellow trader Michaël van de Poppe, in his Wyckoff depiction, highlighted an area just above $32,000 as the do-or-die support level for BTC bulls.
“That would generate a higher low & strength towards further upwards momentum,” he told Twitter followers.
Wyckoff has not been as eagerly accepted by everyone, with Crypto Ed on Wednesday criticizing a general lack of understanding of the method’s principles and the potential for incorrect conclusions which could result.
Caution on Puell Multiple bottom
For on-chain indicators, the story was conversely still bullish, even as one in particular left room for another BTC price low.
That was the Puell Multiple, a classic indicator for catching undervalued periods in Bitcoin’s lifespan, which is currently sitting in its broad “undervalued” zone for just the fifth time ever.
Related: Institutional investors aren’t buying Bitcoin at 50% of all-time highs …for now
As discussed by analyst Rekt Capital in a dedicated video on Wednesday, Puell suggests that miners have sold to cover costs, and given its descent to the “undervalued” zone, a price bottom could soon appear.
The previous four bottoms in Puell nonetheless did not line up with price bottoms exactly, these generally coming shortly after the indicator had reversed upwards.
“The fact that we’re in this green (Puell) Multiple region doesn’t necessarily mean to us that we’re at the very bottom,” he commented on the latest chart.
“The (Puell) Multiple could still go towards the downside and price could still follow it as well.”
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