Bitcoin : Signs of accumulation and more upside potentialThe Wyckoff Method is a study of how market makers and whale manipulate retail traders to get in, and out of large positions. It's something any serious trader MUST understand. You do not want to get caught in distribution, and you don't want miss out on accumulation or re accumulation.
In this idea I am covering what seems to be a potential Wyckoff Reaccumulation phase on Bitcoin.
What is a Reaccumulation?
If you look at the idea linked below you can see the different phases of a market.
There are 4 key phases in a Market Cycle:
1. Accumulation
The heavy buying phase before the uptrend begins.
2. Mark Up/ Re accumulation (Current Phase on the chart)
Mark Up is the uptrend, Re accumulation phases are sideways pauses in the uptrend where more buying occurs before continuation of trend.
3. Distribution
The heavy selling phase before the downtrend begins.
4. Mark Down / Redistribution
Mark Down is the downtrend, Re distrubution phases are sideways pauses in the downtrend where more selling occurs before continuation of trend.
#2 is the current potential phase we are covering in this idea :) And as you can see in the image above, when the price was in a uptrend the Reaccumulation phases are marked in yellow. So a reaccumulation is basically when price of an asset is increasing in value, the market begins to move sideways with the direction up or down undecided, while this occurs a trading range is formed and many buyers are entering positions at the bottom of this range, reaccumulating for the next leg up.
What is a Wyckoff Reaccumulation?
This particular range described in the image with lettering is Wyckoff Schematic #2. The Wyckoff Method is a study of how market makers and whale manipulate retail traders to get in, and out of large positions.
A Wyckoff Reaccumilation Schematic is basically a study on a advanced chart pattern whales and large size traders use to trick retail traders (mom & pop investors) into "PANIC SELLING" there asset or triggering stop losses under important support areas to generate the massive liquidity needed to fill large buy orders. They trick the traders and fill orders at the Shakeout and Spring areas.
In the above image you can click the pins for a further explanation of each characteristic of the Wyckoff Range.
So far Bitcoin is matching up quite well to this pattern, the PSY and Shakeout phases are quite obvious, not to mention that there is alot of Institutional Buying happening behind the scenes. It is likely this range breaks to the upside and we push towards the $45,000-$50,000 mark.
If you visit: www.bybt.com
You can see Grayscale Investments has added 26100 Bitcoin to its holdings this week, purchasing Bitcoin at a faster rate then it is produced, the rules of Supply and Demand tell us that when Demand outweighs the Supply of an asset, prices increase.
Paired with the potential Wyckoff Reaccumilation range, if this pattern continues to form it will be a very strong sign higher prices are coming.
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