Quick application of wychoff model to our current bitcoin price action.. we are ether in a correction phase or a breakdown. I'm inclined to believe correction at this current point.
correction vs mark down
a mark down requires a failed rally attempt. a rally is defined by a breakout of a local top on high buying that is unable to reclaim a high. this is just not what occurred here...a higher low made a day after the ATH was put it in and selling just kind amplified as it went.
a correction in a market is a result of lower and sell off that goes around ~20% down. - this more closely resembles the market as we see it right now.
if this is the markdown phase somewhere in the neighborhood of 3480 is the measured spot for discount re accumulation.
i believe having a major USD exchange offline speed up the timetable on this by quite a bit.. it wouldnt have been ~100 dollar daily candle under normal circumstances.
sell off stopped exactly on the s2 of the weekly , s4 of the daily and directly on a reasonable from teh last accumulation point . i dont believe in coincidences in markets.
(i dont use much because of curve fitting potential)
I use in all my trading regardless of market. This last push down behaved like 1D always does right before it bottoms out.. A breach of 20 occurs, a last push down attempt happen
If you use in your trading , the current position tell you not to short but to wait for a good reentry.
i dont usually chart china. im aware that the is fake however since finex had an 16 hour outage - this is the best data we have to work with. I have purposely excluded the sharp uptrend in positive in OBV on the lower time frames due to this.
still in play so far, bounce off a logical point. lets see what happens.
looks like target was hit.. let see how well this works.
if this was a correction we should see a higher level accumulation attempt.
if this is actually wychoff break down, it will try to make another low after this lower high