Bitcoin Enters a Phase C Wyckoff Dist (Target Price $9,060)
Happy Thursday. Currently the formation has completed Phase B of a Wyckoff Distribution and is moving into Phase C of a Wyckoff Distribution – arguably the most volatile of all the Wyckoff Phases. I believe the PA appears to be headed lower in the near future for a number of key reasons:
The current cause built into the formation from consolidation suggests a target price of $9,060.00. Always keep in mind, as consolidation continues more cause is built into the formation (much like a spring being wound and compressed before being released). Consequently, the price target will shift as consolidation continues and more cause is built in.
While a line of support exists at the $9,360 price handle on the 15M Intraday, my expectation is it will provide a momentary pause in downward price movement rather than strong support.
As the formation moves into a Phase C Wyckoff Distribution volatility is what defines this Phase. Upward Thrusts After Distribution (UTAD) and shakeouts should be expected. Unless the formation prints Upward Thrust After Distribution (UTAD) which breaks past resistance at the $9,580 price handle, Backs Up to form a Last Point of Support (BU/LPS) at or above the resistance line and bounces, the formation still maintains a bearish bias.
Always remember this is not trading advice.
Outside of that, Happy Trading.
- The formation has remained constrained beneath the trend line (on the 4H Intraday) from the Upward Thrust After Distribution (UTAD) at the $10,000.00 price handle. Currently the upper line of support at the $9,460 price handle is acting as resistance and constraining price beneath it as well.
The formation is grinding along a Bearish Support Line, formed Downward Breakdown of the Bearish Support Line, and signaled a Sign of Weakness (SOW) as it formed the “Creek” to jump across. “Jumping the Creek” generally happens as Phase B ends and is an attempt to rally above resistance at the $$9,580 price handle (which was unsuccessful).
The formation failed to break past the upper support line at the $9,460 price handle on the “Jump Across the Creek”, signaling weak demand and bearish bias. Further, on the pullback, the low re-tested the Bearish Support Line.
The current cause built into the formation from consolidation suggests a target price of $9,060.00. Always keep in mind, as consolidation continues more cause is built into the formation (much like a spring being wound and compressed before being released). Consequently, the price target will shift as consolidation continues and more cause is built in.
While a line of support exists at the $9,360 price handle on the 15M Intraday, my expectation is it will provide a momentary pause in downward price movement rather than strong support.
As the formation moves into a Phase C Wyckoff Distribution volatility is what defines this Phase. Upward Thrusts After Distribution (UTAD) and shakeouts should be expected. Unless the formation prints Upward Thrust After Distribution (UTAD) which breaks past resistance at the $9,580 price handle, Backs Up to form a Last Point of Support (BU/LPS) at or above the resistance line and bounces, the formation still maintains a bearish bias.
Always remember this is not trading advice.
Outside of that, Happy Trading.
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