Worth_The_Ri5k

Crypto Markets In Trouble : Potential Wyckoff Warning Sign

Short
CRYPTOCAP:TOTAL2   Crypto Total Market Cap Exclude BTC, $ (CALCULATED BY TRADINGVIEW)
What is TOTAL2?

The TOTAL2 Shows us the Total Market Capitilisation of Cryptocurrencies (TOTAL MARKET VALUE) the amount of money in crypto excluding Bitcoin basically.

Investing and trading based on price alone is like seeing the tip of an iceberg in the vast ocean, analyzing the Market Cap of cryptocurrencies is a great way to gauge the strength of Altcoins and the Market in general.

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Potential Wyckoff Distribution:

Trading ranges ( TRs ) are places where the previous trend (up or down) has been halted and there is relative equilibrium between supply and demand . Institutions and other large professional interests prepare for their next bull (or bear) campaign as they accumulate (or distribute) shares within the TR .

In both accumulation and distribution TRs , the Composite Man is actively buying and selling - the difference being that, in accumulation, the shares purchased outnumber those sold while, in distribution, the opposite is true. The extent of accumulation or distribution determines the cause that unfolds in the subsequent move out of the TR ."

See the Wyckoff Distribution Schematic here for comparison:
https://www.wyckoffanalytics.com/wp-cont...

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Thoughts:

In this particular trading range we can see that the SUPPLY clearly outweighs the demand, with the equilibrium now falling below the initial formation of the trading range you can see on the left.

Unless this gets back above 850 billion or so with the creation of a Inverse Head & Shoulders pattern (marked with yellow trendline) we are entering another potential mark down phase for Cryptocurrencies.

Click this image to learn about Inverse Head & Shoulders Pattern:

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See my Bitcoin Distribution idea here for comparison:
(Click and hit PRESS PLAY)

Note the clear LPSY Last Point of Supply where BTC rallied with low volume and failed to get back inside the Trading Range. It is one of the key characteristics of DISTRIBUTION patterns.
Comment: Just a quick update, was a good result and altcoins did have a bit of downside after the post we are now coming to deciding point above 850 billion they may turn bullish as its showing a large amount of capital flowing into the market.
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Comments

Best post!Thanks a lot
Reply
Worth_The_Ri5k OptimoomFX
@OptimoomFX, Thanks mate, Its respected the levels on this one pretty nicely and at a key point now lets see what happens.
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Definitely exchange out your crypto for USD (or your local fiat) until the crash bottoms out... you're not paperhands if you intend to get back in at the bottom, and you get a ton more coins to boot. Diamondhands will still have the same number of coins at the bottom they had at the top.
Reply
Worth_The_Ri5k drcorvinus
@drcorvinus, exactly always better to try increase your stack thats why I trade with Coin Futures instead of USDT during the Bull Phases.
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Hi thanks for the great chart, this one looks better than the Short Term BTC Wyckoff Schematic invalidated since Short Term failed 34k?
Reply
@AsJaN, Was watching the Accumulation recently, it does look invalidated but there is also the potential for a deeper spring at 26-28k.

If we dont bounce now on BTC then the failure of the accumulation or the latter its likely it will add to the probability of this playing out on altcoins.
+1 Reply
@AsJaN, ty
Reply