BITCOIN, Wyckoff Dynamics to Setup HUGE ALTERATION!

Hello Community,

the year 2022 has finished and the start of 2023 has been initiated. The year 2022 was a year of extremely volatile market conditions showing the results of a longer series of economic events like fallouts in supply chains and partial sectors on the verge of a completely new way of overthinking their place in the economy causing the financial markets to reiterate the positions of assets and showing massive disruptions within the financial markets and so also in the cryptocurrency market, huge chain-reaction events triggered massive volatility within the markets and caused the central banks to intervene against inflationary pressures spreading with the roots in several factors which fuel the heavy inflation like energy shortage, monetary expansion, and supply chain disruptions. And in all of this market turmoil remain Bitcoin and the Cryptocurrency market while the price action was highly volatile with many peaks and valleys continuously through the year 2022 the technological adoption and preparedness of Bitcoin and Cryptocurrency to be adopted on a mass scale have not declined to pre-levels seen before 2022. Now with these given factors established in 2022 the question of how the dynamics will develop through the next times moving forward into 2023. With this lineup, it is preeminent to consider the technical analysis components as I have done it in my Wyckoff analysis put together the puzzle pieces of fundamentals and market behavior in the visual element of technical price action.

In my chart, you can watch the underlying Wyckoff dynamics within the Bitcoin price action and I am going to discuss them in the following, where Bitcoin is standing now out of the Wyckoff perspective and what movements are likely to be expected when applying the Wyckoff projections during the current market phase.

Completed Phases

• Phase A:
  Within the first phase of the Wyckoff accumulation dynamics to be watched with Bitcoin massive selling pressure hit the market and Bitcoin moved into important support zones to first establish the PS- Preliminary Support point where Bitcoin moved into previous supports and an initial inner price action bounce has showed up indicating that the area between $19,500 and $20,500 can be a good point of support for a potential reversal. Once Bitcoin completed the PS Bitcoin moved into the final SC- Selling Climax point where the most selling pressure in the whole structure unloaded in the price action and Bitcoin reached the initial low of $17,700 from where the first bounce emerged. Now the AR- Automatic Rally was driven by investor's and trader's silver lining to see a fast and strong recovery in the whole cryptocurrency market and a relief rally because of faster Web3, Metaverse, and NFT adoption and developments, this rally has been partially fulfilled with some solid volume coming in to establish new highs that preceded the PS lows.
  
  
• Phase B:
  The second phase B has been the phase in which the market literally prepared on the FTX collapse that caused Bitcoin and Cryptocurrencies to dump sharply. The significant factor here is the 40- Moving Average of Bitcoin because the price action the whole time stayed below the 40-MA marked in blue in my chart this was the first important indication for Bitcoin to dump more sharply as Bitcoin did not managed to form new highs and indeed this was also a difficult time as the market also struggled because of the Luna, Celsius, and Voyager Digital crashes aftereffects. And then the final trigger for the massive dump and sharp decline to the downside has been the final FTX collapse with the information of misuse of customer funds in the FTX exchange the market reacted immediately on this news and Bitcoin as well as the whole Cryptocurrency price plummeted heavily to initiate the phase C in the Wyckoff accumulation dynamic.
  
  
• Phase C:
  This is the most determining phase in the whole Wyckoff accumulation dynamic to watch in my Bitcoin price chart because after the heavy FTX collapse the market managed to hold crucial support below the previous support level at the $15,500 zone and do not break below this level which was an important sign of strength within the market and Bitcoin showing that there is still potential for a reversal after the market crashes. while data showed that Bitcoin holders accumulate further Bitcoin and smart money market operator's open interest also increases in Bitcoin this caused the main stabilization in this area and Bitcoin initially rallied to test the previous support which is now still resistance at the $18,000 level. what is important in this phase C is also that right after the market crashed major volume moved into the market and caused the initial price rally, higher volume at such lower prices is always an central indicator of price stabilization.
  
  Upcoming Phases
  
• Phase D1:
  Now as Bitcoin initiated the final test of the spring which is the most determining part of the whole Wyckoff accumulation dynamic this is a phase where Bitcoin is finally in the end-stage of the decision phase and when Bitcoin managed to bounce in this test area again and show a solid support dynamic from where Bitcoin breaks out above the $18,200 level this will be the sign that Bitcoin has the abilities to continue further and finish the whole Wyckoff accumulation dynamic as it is appropriate. Also a really paramount factor, in this case, will be the fact that when Bitcoin bounces above the $18,200 level this will be a setup from where Bitcoin also bounced above the 40-MA marking a final reversal of the 40-MA as the resistance and confirming it as support. With this setup, Bitcoin will provide the final cornerstone of a further completion of the whole Wyckoff accumulation dynamic.
  
  
• Phase D2 and Phase E:
  As phase D is the phase in which Bitcoin shows the final completion of the whole accumulation the second stage of phase D is where the initiation process into a new volatility area is going to emerge. Once Bitcoin has finalized the test and the breakout above the $18,200 zone together with the 40-MA this will be the point where Bitcoin is likely to bounce above the $21,400 resistance and above this area forming an LPS- Last Point of Supply in which Bitcoin will have good chances to stay above the previous resistance and confirm it as support, also a goos factor, in this case, will be when Bitcoin increases the volume moving forward to offer a final bounce into the upper areas and showing an SOS- Sign of Strength in which the volatility, price action, and volume should bounce massively to complete the whole Wyckoff accumulation with the final breakout into the phase E and continuation of the established positive trend dynamics.

Now as I described the underlying factors of the Bitcoin Wyckoff accumulation dynamics going on here we can already see that Bitcoin is moving into a really interesting and amazing decision phase in which Bitcoin will decide if the ability to convert into a massive expansion potential despite seemingly negative macroeconomic developments will unfold again as it happened several times in the past. What has to be mentioned is that this is not the first time Bitcoin is in such a market phase and it always turned out to be a silver lining as Bitcoin and the Cryptocurrency market always managed to come back stronger as established before and return to new heights. Especially as inflation is on a way to lower levels than established during 2022 and the FED looking to slow down more aggressive rate hikes this has good potential to be an additional positive factor contributing to the fact that Bitcoin completes the Wyckoff accumulation dynamic as it is projected. I am going to monitor the dynamic and see how the developments move in the further trading sessions.

In this manner, thank you everybody for watching. Hopefully, everybody of you had a good start to the New Year of 2023 and in this manner let us move into the New Year together and celebrate a New Year also for Bitcoin and Cryptocurrency.

The information provided is only educational and should not be used to take action in the markets.