As you can watch in my chart bitcoin is consolidating between the accumulation and distribution channels marked in red and green, these channels show each accumulation and distributions bitcoin has fulfilled the last weeks and months which building up a coherent market-cycle structure, these phases show once in distribution levels where smart-money is selling previous accumulated values and in accumulation where smart-money buys into the market to profit of the markup, which should also be the case for everybody who wants to participate in the profitable markup phase. Bitcoin has already completed two distribution phases and two accumulation phases successfully and is now forming the third and possibly final crucial distribution before it moves on into the ultimate decisive accumulation phase which you can watch marked in my chart.
Markup/Markdown Triangle Cycles:
The contracting huge triangle bitcoin is forming the last times plays a big role in this whole structure because such movements are almost always the cause of high volatile breakouts which can show up a new paradigm in price-action, such triangle breakouts can be watched in the lower timeframes as well as in the higher timeframes. Furthermore, what is from high importance in this current triangle developing is that the markdown and markups matching with the triangle upper and lower boundary touches which are contracting and getting smaller in time and amplitude signaling a huge decrease in and therefore a terminating increase when the triangle finally confirms properly which will happen when the triangle confirms above the upper boundary which will lead to a strong breakout markup pointing to next levels in the structure as you can watch it in my analysis.
Bitcoin currently trades in the third overall distribution phase this can lead to a breakdown and markdown phase similarly to those seen in the past months and year which will be confirmed when bitcoin crosses the lower line of the distribution channel to the downside, this will cause pressure and pointing to the lower levels of support which can complete the markdown phase if bitcoin stabilizes in this range and builds the next accumulation showing up as the crucial factor in the final markup and final confirmation that will happen when bitcoin crosses the still strong upper boundary with high momentum and to the upside, when the established markup phase, in this case, is strong enough it can lead to an extra validation of the breakout, this will be a solid and meaningful cause of bullishness and activation of higher targets where bitcoin will test remaining resistance and move to the upside in a highly possible manner.
For now, Bitcoin is in a precarious situation in the possibly last final distribution phase the reason why this is a distribution is because bitcoins struggles in the distribution channel to advance higher to confirm above the higher boundary similarly as it has done in the previous distribution phases where the price firstly failed and distributed before the markdown begun, therefore, a markdown phase before a final accumulation takes place is much more given within in a high possible schedule than the direct breakout. In this case, we should do not fall for the speculative approach and think the market will just go in the proper direction, in this case, it means to be prepared for a possible breakdown and shakeout occurring before the final confirmation phase begins, when this can be measured and ticked of it will be highly interesting how this whole structure will play out in destiny and comes up with possible occasions.
In this manner, thank you for watching, support for more market insight, have a great day, and all the best to you!
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Information provided is only educational and should not be used to take action in the markets.
And many are anticipating a dump. I think it's not going to happen.
BUT...if it does...I'll buy MORE! :-)
I never use it because I feel it just gives exchanges and excuse to look for my stop out.