Wyckoff Analysis Points to Bitcoin Dip Below $80K Before Month's End
Technical analysts utilizing the Wyckoff methodology predict Bitcoin could experience a "spring" phase by month's end, potentially pushing prices beneath the $80,000 threshold.
Around the opening bell of Tuesday's Wall Street trading session, Bitcoin (BTC) experienced limited price swings while technical analysts forecasted a market floor formation before the conclusion of January.
Key points:
- During the current US trading session, Bitcoin appears unlikely to establish fresh local lows, though significant volatility remains expected throughout the week.
- Technical studies indicate BTC price behavior is currently in a "period of anticipation."
- Technical forecasting utilizing the Wyckoff methodology projects a price swing beneath $80,000 for Bitcoin prior to the start of February.
Tuesday session "highly likely" to maintain BTC above $87,000
According to information from TradingView, the BTC/USD trading pair reached a peak of $88,315 during the session before reversing course and moving toward lower price levels.
Remaining confined within a defined range, Bitcoin provided minimal excitement for those participating in the market.
Some optimism emerged from Keith Alan, who serves as cofounder of the trading resource Material Indicators, in the shape of a buy indication generated by one of his company's proprietary analytical instruments.
"The emergence of a new Trend Precognition signal on the $BTC Daily chart doesn't automatically mean Bitcoin will challenge resistance levels during today's session," he communicated via an X post addressing the subject.
"Although testing resistance remains within the realm of possibility, this new signal suggests a high probability exists that the price will avoid revisiting yesterday's low point today."
Alan's commentary referenced Monday's momentary decline underneath the $87,000 level and noted that the present daily candlestick requires a closing position above the 2026 opening price point near $87,500.
"A wick extending below represents weakness, serving as an indication that a price breakdown will likely materialize in the near term," he continued.
Though both the S&P 500 index and the Nasdaq Composite Index commenced trading with marginal gains for the session, the gold market started displaying signals of a potential retest of the $5,000 support threshold.
With volatility subsiding throughout broader macro asset classes, Bitcoin price momentum assessments from the onchain analytics platform CryptoQuant maintained a cautiously positive outlook.
"Information sourced from Binance demonstrates that daily price momentum registers as positive at roughly $1,676, exhibiting momentum of 1.93%, signaling a moderately elevated closing price when compared to the opening price," stated contributor Arab Chain in a "Quicktake" blog entry.
"This measurement reflects an evident effort by the market to restore equilibrium following a prior wave of selling pressure; nonetheless, it has not yet formed strong bullish momentum. Rather, it points to a quiet corrective movement."
Arab Chain further noted that order-book information from Binance revealed Bitcoin existing in a "period of anticipation rather than an immediate breakout or distribution phase."
Wyckoff methodology identifies "spring" event on Bitcoin's horizon
According to previous Cointelegraph coverage, market participants were bracing for renewed turbulence during the latter portion of the week.
The US Federal Reserve's interest rate decision was scheduled for Wednesday, accompanied by commentary from Chair Jerome Powell, who faces substantial government pressure to reduce rates.
Notwithstanding this pressure, probability estimates for a rate reduction remained under 3% as of Tuesday, according to information from CME Group's FedWatch Tool.
Within his most recent market projection, analyst and commentator MartyParty attributed additional significance to the Federal Reserve announcement and other scheduled events this week.
Employing Wyckoff analytical techniques, MartyParty identified a critical long-term swing low point, referred to as the "spring," transpiring on the BTC/USDT pair during approximately the same timeframe. A chart included with the analysis cautioned that this development might push the trading pair beneath the $80,000 level.
"This timing aligns with the Wyckoff Spring Event. Expect Volatility," he communicated to his X followers.
