The bullish outlook appears despite the ongoing Bitcoin $BTC sell-off, which is being led by the growing risks of a recession in the United States.
Bitcoin $BTC is down over 4% in the past 24 hours, falling below $60K. However, a retest of $74,000 in the coming weeks is possible, at least based on a maturing Wyckoff reaccumulation pattern and increasing odds of three rate cuts by 2024’s end.
The Wyckoff reaccumulation pattern is a technical setup that identifies phases of consolidation and accumulation after a prolonged uptrend.
In this pattern, the price typically goes through nine critical phases, namely Preliminary Supply (PSY), Buying Climax (BC), Automatic Reaction (AR), Secondary Test (ST), Spring, Test, Last Point of Support (LPS) and finally, the Sign of Strength (SOS).
According to the Wyckoff re-accumulation rule, a new uptrend cycle will begin when Bitcoin enters the ninth and final stage, called the Sign of Strength (SOS), after retesting the Wyckoff pattern's peak level of around $74,000.
This final stage signals strong upward movement and market strength, indicating a confirmed uptrend.
