Hello, dear friends!
Do you remember some time ago I shared the analysis using Wyckoff’s approach. I told you that the Bitcoin is forming the accumulation phase. On the top of the chart I added the screenshot from the book about Wyckoff theory with the accumulation type which I meant. But this accumulation changed it’s form during last weeks. Nevertheless BTC is forming the another type of accumulation.
We can see that the trading range is clearly formed as the upward trend channel. All the Wyckoff events are also you can find on the chart. There was no spring phase as I mentioned in my previous articles. Here we can see 2 secondary tests instead of it. After that the upthrust was formed at the top of the range and the rapid decrease followed by it. If it would be the distribution this drop should not be stopped above the lower band of the range. We should see the breakdown on the increasing volume, but we didn’t. Instead of breakdown we saw the large purchased above the lower band. The price even did not reach this band. For me it is the sign of strength and the shakeout to liquidate the long traders before the true growth. Also I want you to notice the trendline which was broken earlier. The price just formed 2 retests and nothing else. It’s absolutely normal to see such shakeouts.
If you read my previous articles you know that I changed my mind from bearish to bullish when the price broke down $30k. Some people criticize me that I’m permanently bullish, but I am bullish only during last month. The price is staying in the range and every day the new evidences for the bounce appear. Today my confidence in the further Bitcoin growth increased again an I am still waiting for at least $35k. But, don’t wait for the immediate trend revers and new ATH. It is local accumulation which in my opinion leads to the local growth. The terminal stage of the bear market will be on the crypto and traditional markets.
Good luck!
