Background
This post is based on the Wyckoff Method, created by Richard Wyckoff after he reviewed how "whales" interacted with macro stocks/markets.
Lots of good information can be found here: https://school.stockcharts.com/doku.php?id=market_analysis:the_wyckoff_method
The specific Schematic we focus on here is found at: https://school.stockcharts.com/lib/exe/fetch.php?media=market_analysis:the_wyckoff_method:wyckoffaccumulation.png
Chart Analysis:
It appears that TOTAL2, the Market Cap of Crypto Alt Coins, 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.
To illustrate the importance of this structure (the completed Accumulation), I've included one of my favorite examples: Bitcoin during late 2015. As can be seen, the structures of 2015 Bitcoin & 2018-2020 TOTAL2 are extremely similar. Additionally, while Bitcoin underwent its accumulation for ~8 months, TOTAL2 has spent almost 2 full years completing its pattern. Whether this will lead to a *more* significant markup than Bitcoin underwent (~100X from the lows) remains to be seen. This is, however, a reasonable assumption due to the length of time spent in accumulation.
Some good questions to follow up on:
1) Are there specific Alts that match this pattern or do all Alts suggest markup?
2) Do only Alt/USD charts look appetizing through a Wyckoffian lens? Or perhaps Alt/BTC as well?
3) Are there examples of failed Wyckoff Accumulation? Should we be cautious?
I plan on exploring each of these questions ^. Follow me on each of my platforms to keep up to date.
This post is based on the Wyckoff Method, created by Richard Wyckoff after he reviewed how "whales" interacted with macro stocks/markets.
Lots of good information can be found here: https://school.stockcharts.com/doku.php?id=market_analysis:the_wyckoff_method
The specific Schematic we focus on here is found at: https://school.stockcharts.com/lib/exe/fetch.php?media=market_analysis:the_wyckoff_method:wyckoffaccumulation.png
Chart Analysis:
It appears that TOTAL2, the Market Cap of Crypto Alt Coins, 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.
To illustrate the importance of this structure (the completed Accumulation), I've included one of my favorite examples: Bitcoin during late 2015. As can be seen, the structures of 2015 Bitcoin & 2018-2020 TOTAL2 are extremely similar. Additionally, while Bitcoin underwent its accumulation for ~8 months, TOTAL2 has spent almost 2 full years completing its pattern. Whether this will lead to a *more* significant markup than Bitcoin underwent (~100X from the lows) remains to be seen. This is, however, a reasonable assumption due to the length of time spent in accumulation.
Some good questions to follow up on:
1) Are there specific Alts that match this pattern or do all Alts suggest markup?
2) Do only Alt/USD charts look appetizing through a Wyckoffian lens? Or perhaps Alt/BTC as well?
3) Are there examples of failed Wyckoff Accumulation? Should we be cautious?
I plan on exploring each of these questions ^. Follow me on each of my platforms to keep up to date.
Comment:
Note: This idea becomes invalidated with successive closes back inside the traderange that it is currently consolidating above. For now, the play would be to buy/hold Alts that match this pattern.
Follow me on each of my platforms to keep up to date:
www.Twitch.tv/CryptoJack
www.Twitter.com/@CryptoJackLive
www.tradingview.com/u/Crypt0Jack/
www.youtube.com/@cryptojacklive
www.Twitch.tv/CryptoJack
www.Twitter.com/@CryptoJackLive
www.tradingview.com/u/Crypt0Jack/
www.youtube.com/@cryptojacklive
