BTC range and key levels to watch in mid-term
BTC has been in a sideways mode for 48 days. During the last two consolidations, it took almost 60 days each time (nov 2022-jan 2023 and jan 2023-march 2023) for BTC to escape the previous ranges.
The on-going consolidation would end soon? What will be the next direction? These are still big questions that everyone asks.
In my opinion, we should be more patient before the next big move comes. Beside the current range, I'll keep a close eye on key levels: Fib, CME gaps and the trendlines as depicted in chart. The events linked to macros are also important to remember although these ones are not the only to watch. Unexpected events with big impact on BTC would happen as well.
What are your views for BTC?
Comment:
Distinguishing between accumulation and distribution phases in the Wyckoff Method are challenging. Here are some key differences to look for:
Volume: During accumulation, trading volume tends to be low, as institutional investors quietly accumulate assets without attracting attention from the broader market. In contrast, during distribution, trading volume tends to be high, as institutional investors actively sell assets to the broader market.
Price: During accumulation, prices tend to trade in a relatively tight range, as the institutional investors accumulate assets at lower prices. In contrast, during distribution, prices tend to be volatile and may experience sharp price movements, as the institutional investors sell assets to the broader market.
Chart patterns: Accumulation and distribution phases may exhibit different chart patterns. For example, during accumulation, a chart may form a bottoming pattern, such as a "W" or "cup and handle" pattern. In contrast, during distribution, a chart may form a topping pattern, such as a "head and shoulders" pattern.
Support and resistance levels: During accumulation, the price may find support at a particular level, as institutional investors accumulate assets. In contrast, during distribution, the price may encounter resistance at a particular level, as institutional investors sell assets to the broader market.
Volume: During accumulation, trading volume tends to be low, as institutional investors quietly accumulate assets without attracting attention from the broader market. In contrast, during distribution, trading volume tends to be high, as institutional investors actively sell assets to the broader market.
Price: During accumulation, prices tend to trade in a relatively tight range, as the institutional investors accumulate assets at lower prices. In contrast, during distribution, prices tend to be volatile and may experience sharp price movements, as the institutional investors sell assets to the broader market.
Chart patterns: Accumulation and distribution phases may exhibit different chart patterns. For example, during accumulation, a chart may form a bottoming pattern, such as a "W" or "cup and handle" pattern. In contrast, during distribution, a chart may form a topping pattern, such as a "head and shoulders" pattern.
Support and resistance levels: During accumulation, the price may find support at a particular level, as institutional investors accumulate assets. In contrast, during distribution, the price may encounter resistance at a particular level, as institutional investors sell assets to the broader market.
Comment:
In my opinion, BTC prices are at a critical point.
The EMA 50D support was broken. Prices are at the Fib 0.382.
Volume indicators' (CMF and MFI) values are at its trendline support.
I would wait for the current 2D candle to finish (in 1D and 8 hours) to see if BTC will bounce or have a big correction.
The EMA 50D support was broken. Prices are at the Fib 0.382.
Volume indicators' (CMF and MFI) values are at its trendline support.
I would wait for the current 2D candle to finish (in 1D and 8 hours) to see if BTC will bounce or have a big correction.
Comment:
BTC moves like a distribution phase is on-going.
After that, what will happen at the end: another rally or a big correction?
Possibly it's still soon to say. We need to observe more: