We have seen a lot of whining about the market being manipulated when bitcoin printed a huge red candle recently which probably liquidated tones of longs. To be honest markets are indeed subjected to manipulation by huge players and crypto market is not an exemption to this. While big players do this to your disadvantage if you dont understand what they do, They work to your great profits if you learn to understand their schemes and manuever.
This analysis attempts to show a Wyckoff scheme of accumulation we are seeing on $FUEL.
$FUEL is on a Potential Wychoff Schematic specifically towards the end of its Phase C on Wyckoff Events and Phases.
The price history does look like its about to form a long term but does it qualify as a per Wyckoff principles?
Here are some observations we saw in the 3 Day Candle Chart which suggest that indeed Fuel is on a .
1) The and price spread has been significantly reduced as the market approched the support in the area of the Selling Climax during the secondary test which occured at Phase B specifically on December 9, 2018. This suggests that there is a scarcity of supply at that level and implies a bottom is confirmed. Many are suggesting that $BTC is in a similar Wyckoff Scheme, but unlike $FUEL, the was increasing on bitcoin as the market approached the support in the area of selling climax during its first secondary test which suggest that Bitcoin supply overpowers the demand.
2) There was an Ultra High Absorption of Supply which occured at a trading range higher than support lines of the the Accumulation Range from December 18, 2018 to February 24, 2019 (see elongated circle). This is an indication that big interests are accumulating high of shares from the retail.
3) During this same span of time, we have witnessed a divergence between the and the price which signal a probable change in the direction of a price trend. You can easily observe in the same spot (see elongated circle) that there are several high-volume (large effort) but narrow-range price bars after a substantial long term decline(downtrend), with the price failing to make a new low. This suggests that big interests are accumulating huge chunk of shares and provides us an early warning of a possible change in trend.
In conclusion, we are likely to retest the accumulation range resistance which is about 100% target from our current level. A convincing break from this resistanceis a sign of strength and will confirm our interpretation of the prior price action. This will likely send $Fuel to a much higher price level.
That's it friends, I looking forward for your comments on this analysis.
A definition of terms on the labels included in the chart is at the bottom, for your appreciation.
This is just a guide, not a trading advise.
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-Your Wyckoff Poop Trader