Several weeks have passed the top-ranked digital currency Bitcoin (BTC) is still trading sideways through $9100 – $9300 zone. This price action of Bitcoin is referring to the accumulation phase of Bitcoin. Recent data suggests that the leading digital asset is currently going through its accumulation phase. The end of this phase may bring a $10k break for the coin.
Mark up phase to start after the accumulation phase
Usually, the bitcoin accumulation phase occurs when the price value of Bitcoin is reaching low levels. But now, this phase is taking place at a time when the Bitcoin price is trading near the psychological level of $10,000. This means that if Bitcoin is really undergoing its accumulation phase, then it may soon witness a bull run.
There are four phases of accumulation, mark up, distribution, and markdown that markets undergo as per the Wyckoff theory. Bitcoin is now in the accumulation phase where investors are accumulating their BTC holdings. After this phase, the mark-up phase for Bitcoin is expected to occur. This is the phase during which prices upsurge and a bull run start.
In December 2018, when Bitcoin’s price dropped to $3200, a strong accumulating activity was noted on the part of BTC investors. After that, the prices surged high marking the mark-up phase.
Bitcoin stands at critical situation
The world’s leading digital currency is currently standing at a very critical situation where it is attempting for a bullish breakout. This is the situation from where Bitcoin can either start a fresh bull market or it can witness a significant drop. The thing is if the coin falls below $9k it may likely enter into a strong bearish trend.
Another possibility for Bitcoin is that it can set an uptrend for its new bullish rally by breaking out of its stable zone which may lead the coin up to the $10k mark. Stability and the current accumulation phase of Bitcoin are two factors which are indicating towards $10k breakout for the leading coin in the coming days.