BITCOIN-WYCKOFF-UPDATE, Sign-Of-Strength Emerged!

VincePrince Updated   

Welcome to this update-analysis about Bitcoin and its Wyckoff Accumulation Developments that are taking place since the increased bearish volatility to the downside has shown up in May this year. In the former origin-analysis, I already exemplified the main phases of Accumulation Bitcoin developed and with its decisive elements such as the selling-climax or the spring, if you did not see this analysis already I highly recommend it to watch to have a full overview as this analysis is building upon it. Since the former analysis, significant measurements changed the interface of Bitcoins structure however what has not changed is that Bitcoin is proceeding further in its Wyckoff-Accumulation-Developments and that an upside movement has a higher possibility.

Especially in recent times, the recent 24 to 36 hours paramount processes have taken place in the cryptocurrency market. Surely within all of the whole Accumulation Pattern, decisive events have taken place such as smart money accumulating further or bigger financial institutions such as banks showing interesting in Bitcoin however in the past 24 to 36 hours crucial determinations have taken place finally that manifested in a real price-action surge fitting to the Wyckoff-Accumulation-Development and building the foundation for further steps that are likely to take place in the near futures. In the past 24 to 36 hours Bitcoin gained almost over 15% in a sharp short-squeeze consisting of heavily increased short-liquidations, it shows how proper preparation in the foremath can help to gain an advantage in the market and do not get trapped by market makers, a critical event that brings the urgency to look closer into the situation.

Second Test:
As when looking at my chart we can watch there that Bitcoin since I published the origin-analysis on the 29th June has protracted with its development in phase D and moved on to test the range between 29785 and 31100 a second time and because the bearish selling pressure and volume did not increase Bitcoin sufficiently marked this range as solid support in which Bitcoin bounced to the upside. It was also the point in which bigger companies accumulated additional shares such as the trading firm of the richest Bitcoin billionaire buying a lot more shares within this zone. These developments showed up with an initial bounce to the upside that was a great origin for further upside developments and the last-point-of-supply in the structure.

Short-Liquidations-Squeeze Resulting In The Sign-Of-Strength:
Once Bitcoin moved on with the bullish developments since the second test of the lower strong support zone Bitcoin approached the main 34500 level, within these movements further shorts accumulated in the market. In this zone then it came to the actual short-liquidation-spike marked in my chart within the blue box as spread and volume heavily increased in the structure this determined and formed the decisive Sign-Of-Strength (SOS) which is an inherent element within the Wyckoff Accumulation Phase D, even in Binance Perpetual Contract this Spike shot almost to 48000 USD and a lot of shorts got liquidated almost nearing 1 BIllion US-Dollar Short-Liquidations. This movement marks the final fundamental increase of bullish strength and what normally follows after that now is a last-point-of-supply and back-up that in most times tests previous resistance as support, in this case, this will be between 35500 and 36000.

About Wyckoff:
When considering all these factors is highly necessary to recognize the inherent meaning of a Wyckoff Accumulation or Distribution, it is not about a single price-action formation such as a triangle or flag-formation which can occur in every timeframe, it is about the market behavior in which big players operating to utilize the market in a manner that it fits their interest, to either accumulate or distribute at the given manipulated prices. Knowing these facts and especially do not ignoring them is crucial to further one's advancement in markets such as the cryptocurrency market in which smart money operators already settled. Therefore these patterns need to be assessed neutrally to do not get trapped by these market behaviors.

The basis of such a pattern is always the same, there are the same steps that follow up to complete such a pattern similar however neither market situation is always 100% similar to previous ones, this is why there are always changes in the price-formations, amplitudes, volumes and this is why a pattern can be also extended or contracted with certain elements coming up not only once like it is the case with Bitcoin here as it moved on with a second test now. Therefore realizing that there are real humans, smart money operators, as well as retail participants behind the market price-actions, is similar pivotal.


As Bitcoin now protracted with the phase C to develop a second test and finally show up with the major sign-of-strength that recently developed increasing short-liquidations heavily on almost all exchanges this has a high likelihood to build the source for the next processes within the Wyckoff Accumulation and once Bitcoin has found support within the suggested level as seen in my chart there is a good constitution of Bitcoin bouncing above the upper remaining resistance at 40600 which will lead Bitcoin to enter phase E. This shows one more time that technical analysis is empirical since regardless of what academics stating often that it is just random walk theory, there are patterns that keep repeating within the market and as a sophisticated trader it is possible to take these up and convert them into valuable opportunities, the only thing that is central is to not get distracted by ones own emotions into a one-sighted direction.

In this manner, thank you for watching my analysis about BITCOIN and the Wyckoff-Accumulation-Developments that are determining factors for Bitcoins establishment. It will be great when you support the analysis with a like and follow or comment for more market insight!

Information is only educational and should not be used to take action in the market.

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