Identification of supply and demand according to wyckoff method.
We see a clear phase B, with liquidity exiting the markets as long-term buyers slowly accumulate the coins.
Volatility and volumes drop accordingly.
Should we keep following the pattern and validate it, we now expect some (moderate) volatility kicking in, in an attempt to free liquidity by triggering panic moves (stop losses, etc).
That would mean an increase in volumes, from very low to moderate, possibly an ephemeral drop below the support of the range, which should be bought quickly. Such an event would validate entry into phase C, from which we could start building a new, slow uptrend.
To keep in watch: a break below the support of the range that fails to meet buyer's interest would invalidate the whole pattern.
- Orange area identifies a wyckoff distribution on the 4-hour timeframe. Phase C intentionally skipped, it is known to be hard to identify.
- Green area identifies a possible (as in "valid so far") re-accumulation.
We see a clear phase B, with liquidity exiting the markets as long-term buyers slowly accumulate the coins.
Volatility and volumes drop accordingly.
Should we keep following the pattern and validate it, we now expect some (moderate) volatility kicking in, in an attempt to free liquidity by triggering panic moves (stop losses, etc).
That would mean an increase in volumes, from very low to moderate, possibly an ephemeral drop below the support of the range, which should be bought quickly. Such an event would validate entry into phase C, from which we could start building a new, slow uptrend.
To keep in watch: a break below the support of the range that fails to meet buyer's interest would invalidate the whole pattern.