"Whales are Shaking"...Bitcoin, '$110,000' Rally Scenario Activated After Panic Sell

▲ Bitcoin whale

An analysis suggests that Bitcoin (BTC) could enter the final sharp decline phase of the Wyckoff accumulation structure, with a scenario of breaking past $110,000 after a drop to $52,000 emerging as a new market focus.

According to crypto media outlet Bitcoinist on May 29 (local time), crypto analyst NoName analyzed that Bitcoin is undergoing a Wyckoff Accumulation pattern, one of the most psychologically painful structures in financial market history. NoName explained that this structure involves large institutions and whales keeping prices low and chaotic to shake out as many retail investors as possible before leading to a strong upward movement.

NoName observed that Preliminary Support (PS), Selling Climax (SC), and Secondary Test (ST) have already appeared on the weekly chart. This was presented as an indication that the initial base of Wyckoff accumulation has formed. Bitcoin is once again under broad selling pressure after a brief recovery in March and April, and the sentiment of market participants is also leaning towards bearishness.

The key downside target is $52,000. NoName predicted that Bitcoin could drop to $52,000 one more time before starting a full-fledged rally. This phase corresponds to the Spring stage in Wyckoff accumulation theory, interpreted as a period where the price is sharply pushed below support to trigger stop-losses and panic selling.

However, NoName did not view the drop to $52,000 as a structural collapse. He assessed that this price level is close to a cycle low where so-called smart money can aggressively enter. NoName stated that he himself would likely begin accumulation without hesitation in this range.

The subsequent scenario involves a rapid recovery and a strong breakout. The analysis suggests that once Bitcoin completes the Wyckoff accumulation structure, it could pass the area around $76,000, marked as the Last Point of Support (LPS), and then enter the Sign of Strength (SOS) phase. NoName predicted that if this trend materializes, Bitcoin could surge towards $110,000. Bitcoinist reported that while Bitcoin is currently hovering below $74,000, this analysis simultaneously presents the possibility of a sharp reversal after the fear of decline.

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