UPDATE: Bitcoin Wycoff Method moved like a Beauty to the top

If you remember from November when I first sent this article, we pinpointed that there was an evuidential Wycoff Method and phases taking place with Bitcoin...

We based this on the starting for the phases in 2020 up until 2024 where it has ALMOST reached our first target for 2024 at $71,350/.

Now just because we have a target, does NOT mean we will go short or make a reversal prediction. No, that's all in the charts and it will tell us when there is a change in trend.

We need to be humble to let the market Go down 20% before we make an possibility for a short.

Hence the 20-80 rule... This means I am still very much BULLISH and do not see any reason not to be just yet.

Anyway, I know there are many new traders on TradingView so I will quickly explain the Wycoff Method again.

The Four Phases of Wyckoff’s Method and how it works

Phase #1: Accumulation (Consolidation)

The Accumulation or Consolidation phase, occurs after a prolonged downtrend or in a range-bound market.

During this phase, large institutions, investors and smart money buys the market at lower prices.

And they are able to keep the market sentiment subdued which continues to move in a sideways manner.

Phase #2: Markup (Advancing)

Once traders see the buying interest and demand, this is where they jump in…
And so the market is poised for a potential uptrend.

The Markup phase begins as the price starts to rise.

This phase reflects the transition from a sideways market to a bullish market sentiment.
During Markup, the market’s price rallies.

This allows the rest of retail traders to get in and ride the upward trend to maximise profits.

Phase #3: Distribution

As the market reaches elevated levels until it hits a peak.

That’s where the institutional players begin to distribute (sell) their holdings.

The Distribution phase is characterized by smart money selling their accumulated positions to eager retail investors.

This is where you’ll see another market phase where you can see a sideways or Twilight Zone range.

If you’re able to recognize a Distribution phase, it could prepare you for a potential reversal to the downside.

Phase #4: Markdown (Declining)

Once Smart Money have sold off their positions, prices then start to decline.

Retail traders and dumb money jump right in and start selling their assets – which causes a market crash.

This reversal then enters into a near market.

You’ll see the price making lower highs and lower lows.

And that’s when the market will enter into free fall mode.

It will continue until it hits a bottom. And that’s where the big guys will get right back in.
And the phases start all over again.

Which right now we've seen STRONG accumulation and Markup in the last few months...

Now you know what to look out for

You now have the idea Wyckoff’s Method in your trading arsenal.

Keep these four phases in your mind

Accumulation
Markup
Distribution
Markdown

You can use it help identify and spot different market trends, environments and phases with more confidence.

This can help you to know when to buy, when to sell and when to remain cautious.

Remember, the charts never lie.