BTC - Wyckoff Test Idea
Wyckoff method applying to the BTC /USDT 4hchart. Just for learning purposes.
As we can notice between December and January we had a bull run, almost a month on that ride. Then a retracement coming by almost 30% sending price from 42k to 30k, opening opportunities for an Acummulation Area #1 that lasted also about a month (January 11 ~ February 8). As we can see the AR #1 has placed (for now) a resistance area that right now BTC is struggling to breach around the 39k~40k. We'd like to have BTC keep ranging for a while and keep testing lows (within range boundaries) in order to Institutions and smart money load up more positions and prepare for the upcoming trend.
At the moment BTC is near as it was in Acummulation Area #1. Currently at Phase B of the Acummulation Area #2, an area that might last for a month at least. I've set a timeframe of almost a month and a half because I'm taking into consideration that BTC stayed in Distribution Area for almost 2 months. I draw an SOS area that nicely matches between 38.20% and 61.80% in Fibo levels, also that will be the breakout zone of the range, so it is an interesting zone, that if BTC handles well and We have a solid breach of 61.80%, we might see again our lovely 50K+ targets.
We should pay attention to volume in the accumulation phases. By "theory " selling volume will accordingly decrease and in later Phases, like C we should see BTC start testing in a harder way some lows in order to "shake up" a bit the market, and at some point BTC will have some traps (lows breaking the range) but recovering, just to let the "smart money" get and initiate even way better long positions.
As we can notice between December and January we had a bull run, almost a month on that ride. Then a retracement coming by almost 30% sending price from 42k to 30k, opening opportunities for an Acummulation Area #1 that lasted also about a month (January 11 ~ February 8). As we can see the AR #1 has placed (for now) a resistance area that right now BTC is struggling to breach around the 39k~40k. We'd like to have BTC keep ranging for a while and keep testing lows (within range boundaries) in order to Institutions and smart money load up more positions and prepare for the upcoming trend.
At the moment BTC is near as it was in Acummulation Area #1. Currently at Phase B of the Acummulation Area #2, an area that might last for a month at least. I've set a timeframe of almost a month and a half because I'm taking into consideration that BTC stayed in Distribution Area for almost 2 months. I draw an SOS area that nicely matches between 38.20% and 61.80% in Fibo levels, also that will be the breakout zone of the range, so it is an interesting zone, that if BTC handles well and We have a solid breach of 61.80%, we might see again our lovely 50K+ targets.
We should pay attention to volume in the accumulation phases. By "theory " selling volume will accordingly decrease and in later Phases, like C we should see BTC start testing in a harder way some lows in order to "shake up" a bit the market, and at some point BTC will have some traps (lows breaking the range) but recovering, just to let the "smart money" get and initiate even way better long positions.
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