Is Bitcoin due one final test before true uptrend resumes?
Disclaimer: Not financial advice just my humble opinion, please do your own research before investing your money.
Let's go.
INTRO
The main idea behind the Wyckoff Accumulation or Reaccumulation let's call it WAR for short is for "Smart money" (SM) or massive financial powerhouses to absorb the asset from "Dumb Money" (DM) or Small amateur investors (you and me).
So how can us simple folks outsmart the big guns, we can learn their play book. Now the main mechanism behind the WAR is to maximize selling from DM so that SM can absorb it. The dumps at the bottom of the trading range are all from DM's panic selling.
CHART OVERVIEW
If we look at volume we can see their has been a drop off in selling supply from the first dump on the 19th.May.21 to the second dump on the 22nd.June.21, this represents a 42% drop in volume, however volume still remains high, if we look back in January 2021 we can see there were three significant dumps in the WAR at that time, the first was a 43% drop in volume (very similar to what we've just experienced) and the last was a 62% drop in volume (from the first dump).
ANALYSIS
The final test of the bottom is usually a low volume drop because this represents selling exhaustion, that most of the DM that would sell have finally sold, at this point the WAR reaches it's end point and price breaks through from it's manufactured box.
CONCLUSION
There's a 50% retracement from the upthrust to the second dump that occurred on the January 2021 WAR (See chart); this could be the point we see a final, low volume dump (lower than the first dump but higher than the second dump) before we take off skywards. What do you guys think? Please leave your comments below, appreciate you guys taking the time to read this.
Let's go.
INTRO
The main idea behind the Wyckoff Accumulation or Reaccumulation let's call it WAR for short is for "Smart money" (SM) or massive financial powerhouses to absorb the asset from "Dumb Money" (DM) or Small amateur investors (you and me).
So how can us simple folks outsmart the big guns, we can learn their play book. Now the main mechanism behind the WAR is to maximize selling from DM so that SM can absorb it. The dumps at the bottom of the trading range are all from DM's panic selling.
CHART OVERVIEW
If we look at volume we can see their has been a drop off in selling supply from the first dump on the 19th.May.21 to the second dump on the 22nd.June.21, this represents a 42% drop in volume, however volume still remains high, if we look back in January 2021 we can see there were three significant dumps in the WAR at that time, the first was a 43% drop in volume (very similar to what we've just experienced) and the last was a 62% drop in volume (from the first dump).
ANALYSIS
The final test of the bottom is usually a low volume drop because this represents selling exhaustion, that most of the DM that would sell have finally sold, at this point the WAR reaches it's end point and price breaks through from it's manufactured box.
CONCLUSION
There's a 50% retracement from the upthrust to the second dump that occurred on the January 2021 WAR (See chart); this could be the point we see a final, low volume dump (lower than the first dump but higher than the second dump) before we take off skywards. What do you guys think? Please leave your comments below, appreciate you guys taking the time to read this.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.