BTC/USD: Advanced Wyckoff Accumulation Analysis
In this post, I will be analyzing Bitcoin's hourly chart based on the Wyckoff accumulation gradient of rising bottoms.
Terminology
- Preliminary Support (PS): This is where substantial buying begins to provide pronounced support after a prolonged downtrend.
- Selling Climax ( SC ): This is the point at which widening spread and selling pressure usually climaxes and heavy panic selling by the public is being absorbed by larger professional interests near the bottom.
- Automatic Rally (AR): This is where intense selling pressure is greatly diminished.
- Secondary Test ( ST ): A point in which price revisits the area of the Selling Climax ( SC ) to test the supply and demand balance at these levels.
- Last Point of Support ( LPS ): The low point of a reaction or pullback after a SOS (Sign of Strength)
Analysis
- Phase A: This phase marks the stopping of the prior downtrend. Up to this point, supply has been dominant.
- Phase B: This phase serves as a function of a new uptrend. This is where professional interests accumulate, at relatively low prices, in preparation for the next markup.
- Phase C & D: This is where Bitcoin's price goes through a decisive test of the remaining supply, allowing smart money investors to confirm a markup. If the analysis is correct, this is the phase in which consistent demand dominates supply
- Phase E: The asset breaks out, leaving the trading range, and the markup is obvious to everyone in the market.
Don't try to predict the market. Take it by levels, and play by probabilities.
If you like this analysis, please make sure to like the post, and follow for more quality content!
I would also appreciate it if you could leave a comment below with some original insight :)
Terminology
- Preliminary Support (PS): This is where substantial buying begins to provide pronounced support after a prolonged downtrend.
- Selling Climax ( SC ): This is the point at which widening spread and selling pressure usually climaxes and heavy panic selling by the public is being absorbed by larger professional interests near the bottom.
- Automatic Rally (AR): This is where intense selling pressure is greatly diminished.
- Secondary Test ( ST ): A point in which price revisits the area of the Selling Climax ( SC ) to test the supply and demand balance at these levels.
- Last Point of Support ( LPS ): The low point of a reaction or pullback after a SOS (Sign of Strength)
Analysis
- Phase A: This phase marks the stopping of the prior downtrend. Up to this point, supply has been dominant.
- Phase B: This phase serves as a function of a new uptrend. This is where professional interests accumulate, at relatively low prices, in preparation for the next markup.
- Phase C & D: This is where Bitcoin's price goes through a decisive test of the remaining supply, allowing smart money investors to confirm a markup. If the analysis is correct, this is the phase in which consistent demand dominates supply
- Phase E: The asset breaks out, leaving the trading range, and the markup is obvious to everyone in the market.
Don't try to predict the market. Take it by levels, and play by probabilities.
If you like this analysis, please make sure to like the post, and follow for more quality content!
I would also appreciate it if you could leave a comment below with some original insight :)
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