Background:
This is continuation of this post in which we explore the Alt Coin Market Cap showing signs of Wyckoffian accumulation. Please review this chart work first.
Chart Analysis:
It appears that NEOUSD, the 20th largest crypto coin by market cap, has recently completed Wyckoff Accumulation and is currently undergoing a Wyckoffian SOS or "Sign of Strength". If accurate, this would indicate that the Composite Man, the marionettist of macro markets, is leaving the accumulation phase and beginning his macro markup campaign. This is particularly exciting since the last time we saw a similar macro example was in 2015 with BTCUSD where it made a ~100X return from the accumulated lows. Something similar here would suggest ~$400 NEOUSD at the end of the upcoming bull run.
Note: A return to the prior trade range ($15.50 or below) would disqualify this setup as shown. More consolidation would be needed before a macro pattern could be identified.
This is continuation of this post in which we explore the Alt Coin Market Cap showing signs of Wyckoffian accumulation. Please review this chart work first.
Chart Analysis:
It appears that NEOUSD, the 20th largest crypto coin by market cap, has recently completed Wyckoff Accumulation and is currently undergoing a Wyckoffian SOS or "Sign of Strength". If accurate, this would indicate that the Composite Man, the marionettist of macro markets, is leaving the accumulation phase and beginning his macro markup campaign. This is particularly exciting since the last time we saw a similar macro example was in 2015 with BTCUSD where it made a ~100X return from the accumulated lows. Something similar here would suggest ~$400 NEOUSD at the end of the upcoming bull run.
Note: A return to the prior trade range ($15.50 or below) would disqualify this setup as shown. More consolidation would be needed before a macro pattern could be identified.
Trade closed: stop reached:
Unfortunately, NEO has reentered the trade range. This is a signal of a failed SOS and any trades based on this setup should be exited.
Note: A re-break & close above the trade range (~$16.25 or so) would put this coin back on target for a significant bullish break to the upside. But until that happens, the rules are to close longs and wait for confirmation.
Note: A re-break & close above the trade range (~$16.25 or so) would put this coin back on target for a significant bullish break to the upside. But until that happens, the rules are to close longs and wait for confirmation.
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If you view the remainder of the pattern, what formed was a bull flag (a form of consolidation before bullish continuation). On lower time frames, it appeared that the entire pattern was breaking down. On higher time frame, the bullish move on January 4th 2021 confirmed the pattern was continuing on.
Because the price confirmed bullish continuation the larger suspicion of WYCKOFF ACCUMULATION is 100% confirmed. Price is currently within mark up and dips appear to be for buying. IMO, a reasonable target will be some multiple of prior cycle highs, ~$220 in this case. Additionally, many Wyckoff Accumulation patterns go on to make 100x runs from the lows. In this case, that would be somewhere in the ~$5.00 to $500 range. As such, ~$500 is as reasonable a speculative guess as any for eventual top.
However, the *proper* way to watch for a top is through wyckoff distribution.