BTC Accumulation phase? Let's decode
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In today's analysis we are going to take a look at the 6h chart on BTC and most precisely at the key elements of an accumulation phase according to the Wyckoff method.
Before we tackle the accumulation i just want to note that the price is now trying to escape a simmetrical triangle but with low volume, therefore a lot of chances for the price action to go sideways.
Is the range we are in an accumulation?
Now, don't get me wrong, i know that the range is not formed properly yet, but we can see some key characteristics of accumulations happening in this young range.
- Decrease in volume and volatility as the range develops . There is less and less available supply and the price fluctuations are gradually reduced
- Testing the upper area with low volume , suggesting an absence of interest in selling, the exception will be when the price will be ready to initiate a breakout.
- Bearish false breakout (springs). We've had one but didnt act like a spring.
- Bullish candles are bigger than bearish ones. This one is 50/50 , slightly better on the bull side.
- Development of rising highs and lows. This is pretty obvious, due to the triangle formation we are slightly going up.
Conclusion:
Technically this is not looking bad... really , if we were to ignore all the fundamental context around crypto , this would be a perfect area to enter long term, but the reality is different, fundamentals strike from nowhere and we ca not ignore this. I am keeping my bearish bias but i am also considering the possibility of this being an accumulation area.
I guess the exit and close above the range will heavily strengthen this assumption.
Till next time.
In today's analysis we are going to take a look at the 6h chart on BTC and most precisely at the key elements of an accumulation phase according to the Wyckoff method.
Before we tackle the accumulation i just want to note that the price is now trying to escape a simmetrical triangle but with low volume, therefore a lot of chances for the price action to go sideways.
Is the range we are in an accumulation?
Now, don't get me wrong, i know that the range is not formed properly yet, but we can see some key characteristics of accumulations happening in this young range.
- Decrease in volume and volatility as the range develops . There is less and less available supply and the price fluctuations are gradually reduced
- Testing the upper area with low volume , suggesting an absence of interest in selling, the exception will be when the price will be ready to initiate a breakout.
- Bearish false breakout (springs). We've had one but didnt act like a spring.
- Bullish candles are bigger than bearish ones. This one is 50/50 , slightly better on the bull side.
- Development of rising highs and lows. This is pretty obvious, due to the triangle formation we are slightly going up.
Conclusion:
Technically this is not looking bad... really , if we were to ignore all the fundamental context around crypto , this would be a perfect area to enter long term, but the reality is different, fundamentals strike from nowhere and we ca not ignore this. I am keeping my bearish bias but i am also considering the possibility of this being an accumulation area.
I guess the exit and close above the range will heavily strengthen this assumption.
Till next time.
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