Bitcoin and its changing trends have forced analysts and traders to evaluate the king’s coin movements differently every day. From an excessively bullish market to a bear market, the recent Death Cross and the impending Golden Cross, every move of the coin is analyzed on various charts. But there is one that seems to be becoming a reality out of mere speculation that begs the question – is Bitcoin really in a Wyckoff accumulation?
Bitcoin in Wyckoff accumulation?
Seems to be. Rekt Capital recently analyzed the pattern repeating that this accumulation appears to be occurring but is still short-term.
A classic Wyckoff accumulation pattern prescribes a number of levels that must be achieved. This corresponds to the requirements of the different phases of the design. On the daily chart, Bitcoin has already validated phases A and B, and more recently it appears to have validated phase C. This positive move has created a new resistance at $ 36,000 that is important moving forward towards $ 40,000. Rekt Capital also tweeted about
“BTC has to close above the ~ $ 34,800 level weekly as that would mean BTC has successfully taken back its weekly higher low and 50 week EMA support.
In order for the coin to enter phase D, this resistance must be broken as quickly as possible. BTC is currently on the threshold of the exciting phase C. Since Bitcoin has already made its third higher low in phase C. bYou have successfully flipped $ 33,000 from resistance to support. In simple terms, this is confirmation that Phase C is complete. Phase D could see a higher high of $ 38,000 and retest of $ 36,000.
This is where it gets tricky.
Bitcoin in Wyckoff redistribution?
This was also a possibility. When the king coin is placed on the weekly chart, it can be seen that the move shows a rather bearish momentum. Higher high of $ 38,000 and retest at $ 36,000 in phase D of accumulation was the resistance test and drop down in case of redistribution. If the coin manages to break through $ 38,000 it will rebound, but if it falls it will only continue its downtrend. As mentioned earlier, larger timeframes have higher value, but unless Bitcoin loses $ 28,000 in support, the redistribution will be void.
Going forward, investors will need to closely monitor these levels to ensure minimal losses.
Subscribe to our Newsletter