Wyckoff’s ‘Sign of Strength’ (SOS)
The Wyckoff Method, developed by Richard Wyckoff, analyzes market patterns to predict price movements. The ‘Sign of Strength’ (SOS) indicates when demand exceeds supply, suggesting a bullish trend.
Bitcoin’s Recent SOS Pattern
Charles Edwards, founder of Capriole Investments, believes Bitcoin is showing an SOS pattern. This suggests that the market is poised for a sustained upward movement.
Bullish Indicators
- Bitcoin has broken above its previous all-time high.
- Consolidation above $56,000 is a bullish sign.
- There is little resistance above $70,000, opening the way for higher prices.
- Psychological resistance at $100,000 could be a target.
Fundamental Support
- The Dynamic Range NVT (DRNVT) metric suggests Bitcoin is undervalued at current prices.
- The upcoming Halving event is expected to further boost bullish sentiment.
Conclusion
Edwards believes that the combination of technical and fundamental indicators points to a bullish future for Bitcoin. While short-term volatility is expected, the overall trend is likely to be upward.
