I LATE PUBLISHED THIS, BTC wyckoff schematic #1:Brace yourselves! The chart is a crystal clear warning siren for an impending crash in the Bitcoin market. What we're seeing here is the textbook setup of a Wyckoff distribution phase, a manipulative masterpiece played out by the smart money to trap unsuspecting retail investors before the rug is pulled.
Phase A was just the smart money dipping their toes, testing the waters for liquidity. Phase B, the buildup, was where they revved up the engines, creating a façade of a bullish frenzy, drawing in the crowd with the hype. But then, boom! Phase C hit with the Outthrust After Distribution (UTAD), the classic fake-out move. It's the smart money whispering, 'This is as high as we go, folks,' before they start offloading their bags onto the latecomers.
Now, as we edge into Phase D, the Sign of Weakness (SOW) has revealed itself. This isn't just a dip to buy; it's a cliff edge. The Last Point of Supply (LPSY) attempts are feeble, and the demand is drying up faster than a puddle in the Sahara.
And what's next? Phase E. The markdown. The avalanche. This isn't just going to be a correction; it's shaping up to be a freefall. The volume profile is whispering secrets of a sell-off that's ready to stampede. Those support lines? They'll snap like twigs under a boot. We're not just talking about testing lows; we're talking about rewriting the bottom line.
This is the moment where fortunes are lost, where the latecomers holding the line get burned. The chart is screaming caution. It's not a matter of if, but when. The crash is looming, and it's going to be cataclysmic. Don't be the one left holding the bag when the smart money has cashed out and left the building. This is your warning!
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TO BE FORMAL AND PROFESSIONAL.
Here's a breakdown of the typical phases and events in the Wyckoff Schematic #1, as they might relate to your chart:
Phase A: This phase marks the stopping of the prior uptrend. Key elements include:
Preliminary Supply (PSY): Where large interests begin selling the coin and volume increases.
Buying Climax (BC): Where demand is fully satiated, and there is heavy buying from the public, leading to a sharp rally and subsequent sell-off.
Automatic Reaction (AR): The immediate sell-off after the buying climax, setting a range for the trading range (TR).
Phase B: This phase is characterized by building a cause for the new downtrend.
Secondary Test (ST): Where the market tests the supply and demand balance at the upper and lower bounds of the TR established in Phase A.
Upthrust (UT): A test above the TR that fails and falls back into the range, showing that demand is not strong enough to break through the supply.
Phase C: This phase indicates the readiness to leave the TR and begin a new downtrend.
Upthrust After Distribution (UTAD): A sign of weakness, where price goes above the TR again but attracts heavy selling from the smart money, confirming they are distributing their holdings.
Phase D: The price begins to move downward as the distribution phase is ending.
Sign of Weakness (SOW): Price action that moves below the support level of the trading range, suggesting that supply is overwhelming demand.
Last Point of Supply (LPSY): The final attempt to move up into the TR, which fails due to lack of demand.
Phase E: This is the markdown phase where the price declines.
The chart depicts a series of lower highs and lower lows, consistent with a bearish trend.
The annotations on your chart suggest that the analyst is anticipating a bearish market based on the Wyckoff distribution phases. They have marked out specific events and are forecasting a continued downtrend into the future phases (D and E). It's important to note that while Wyckoff's methodology is respected among some traders, it's not infallible and should be used in conjunction with other forms of analysis and risk management techniques.
The chart also includes some narrative annotations about market events, like SEC announcements, which the analyst is using to support their interpretation of the price action within the framework of the Wyckoff Method. These external factors are used to give context to the price movements and potentially indicate the actions of institutional investors.
I hope I was early to warn everyone but I did, just forgot to do it here in TradingView.
