Bitcoin (BTC) may have merely signaled its render to a bull market, according to fresh assay using a century-former price prediction method.

In a tweet on Jan. 7, ex-Goldman Sachs analyst Murad Mahmudov channeled the piece of work of Richard Wyckoff to propose Bitcoin was in the process of a major recovery.

BTC puts in Wyckoff "SOS"

BTC/USD cracked resistance at $7,600 on Mon, surprising punters who considered the levels too difficult to pass under current conditions. At printing time, the pair traded at $7,875, having reached $7,980 and gaining 5% on the day.

Wyckoff was the father of a whole new method of analyzing price performance, dubbed the Wyckoff Method. According to Mahmudov, who uploaded a chart to demonstrate Bitcoin'southward position, the largest cryptocurrency has already put in a bottom.

Tuesday's fasten to near $8,000, for instance, was an "SOS" point for BTC/USD in Wyckoff terms. SOS stands for "sign of strength," and typically follows a and then-called "spring" event which sees a price low point.

Afterwards the SOS, a slight retracement chosen a "back-up" should precede further gains, according to the model.

Bitcoin price as analyzed using the Wyckoff Method

Bitcoin price as analyzed using the Wyckoff Method. Source: Murad Mahmudov/ Twitter

Accumulation phase catastrophe?

Mahmudov did not comment on the extent to which he personally believed in the validity of the bull scenario, which would reverse a full general downtrend for Bitcoin that began in June afterwards reaching nearly $xiv,000.

Following a late October bounce to $nine,500, BTC/USD appeared to bottom out at $6,400 in mid-December, merely non everyone is convinced that the flooring has come and gone.

In the run-up to Bitcoin'due south block reward halving in May, another historically accurate price model, Stock-to-Flow, calls for a toll of around $8,300.

Mahmudov is well known for his highly optimistic views on where the Bitcoin price is heading. In August, he said aggregating — as well the overarching term for Bitcoin'due south electric current Wyckoff phase — was already happening.

"Don't try to outsmart yourself on short timeframes, zoom out & recall large. In my view, BTC is going to $100K per orangecoin," he summarized at the time.