Bitcoin: Wyckoff Theory
Updated
Accumulation or distribution? An important question which comes to mind at this spot.
Wyckoff's theory was simple, accumulation occurs when larger participants are bidding supply, while retail & soft spoken traders are taking profits. With a little socio-economical understanding; a very-viable-variable here. People like to spend in the summer, the only issue is.. they spend what they have, not what they borrow! Now, in a distribution phase, you can assume what happens. Larger participants offload previous bids into soft spoken buyers hands, and exit the market in due size & time... Let's give a little thought here - If Blackrock was buying throughout 30's to near now... would they sell? would they let themselves become other's exit plan? An independent decision to make on their side.
Wyckoff’s concept of the “Composite Man” has been idealized as a guiding 'radar' in the markets, a “Composite Man” should and will lead the markets, allowing soft spoken traders to factualize the understanding of order flow, liquidity preference & the demand for money. His personalized idea of a 'market maker' explains how anyone can determine meaning, curvature & limitations in the market that is being rationalized. The methodology provides a framework to visualize & grasp how liquidity is utilized. Highlighting potential zones for reversals, different phases, & driving actions of market makers.
As Bitcoin progresses through this range, our deviation will get narrower; resulting in a larger move in either direction. Lingering through summer while the euphoria lasts seems best fit. Which then would either drop off a cliff or rebound back, into the cold winter. The time-price opportunity here suggests this will happen before the end of summer, thus saying if we do reach the $63,000-$64,000 level from here by mid June, the likely-hood of a large move will become exponential. Versa, in hopes this is an accumulation phase, seeing $80,000 would give me the confidence to say.. buy more alts & hold on. It would be nice to see Bitcoin push for the $100,000 level, we all want cheaper prices, though I hope in the end we all want a greater world to live in.
Who's your exit liquidity?
Index:
preliminary support (PS)
secondary test (ST)
sign of strength (SOS)
automatic reaction (AR)
sign of weakness (SOW)
Wyckoff's theory was simple, accumulation occurs when larger participants are bidding supply, while retail & soft spoken traders are taking profits. With a little socio-economical understanding; a very-viable-variable here. People like to spend in the summer, the only issue is.. they spend what they have, not what they borrow! Now, in a distribution phase, you can assume what happens. Larger participants offload previous bids into soft spoken buyers hands, and exit the market in due size & time... Let's give a little thought here - If Blackrock was buying throughout 30's to near now... would they sell? would they let themselves become other's exit plan? An independent decision to make on their side.
Wyckoff’s concept of the “Composite Man” has been idealized as a guiding 'radar' in the markets, a “Composite Man” should and will lead the markets, allowing soft spoken traders to factualize the understanding of order flow, liquidity preference & the demand for money. His personalized idea of a 'market maker' explains how anyone can determine meaning, curvature & limitations in the market that is being rationalized. The methodology provides a framework to visualize & grasp how liquidity is utilized. Highlighting potential zones for reversals, different phases, & driving actions of market makers.
As Bitcoin progresses through this range, our deviation will get narrower; resulting in a larger move in either direction. Lingering through summer while the euphoria lasts seems best fit. Which then would either drop off a cliff or rebound back, into the cold winter. The time-price opportunity here suggests this will happen before the end of summer, thus saying if we do reach the $63,000-$64,000 level from here by mid June, the likely-hood of a large move will become exponential. Versa, in hopes this is an accumulation phase, seeing $80,000 would give me the confidence to say.. buy more alts & hold on. It would be nice to see Bitcoin push for the $100,000 level, we all want cheaper prices, though I hope in the end we all want a greater world to live in.
Who's your exit liquidity?
Index:
preliminary support (PS)
secondary test (ST)
sign of strength (SOS)
automatic reaction (AR)
sign of weakness (SOW)
Comment
SOW reached, let's see where this takes us.Comment
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