Looking at the longer term price action of BTC, I can't help but consider the possibility that this is an accumulation zone, according to the Wyckoff method. Price has fluctuated between this zone for over a month now, and has touched the bottom support multiple times, giving "whales" and large players time and opportunity to quietly fill their orders at a low price.
The dip below the lower support can be seen as a "Wyckoff spring". Large players let the price dip below the lower support to see if there was any interest in the market, and to gauge the overall market sentiment. This dip was immediately met with buyer conviction, as price rocketed back up into the zone. For those familiar with the Wyckoff method, a Wyckoff spring is a classic signal that distinguishes an accumulation zone from a distribution zone, which is part of the reason I can see this as an accumulation zone.
As many of us know, markup (uptrend) is the phase that follows an accumulation phase.
However, I am not completely bullish yet, as there is a lot of resistance above that has yet to be broken. This is just one scenario that I see as a real possibility of playing out. Just thought that I would share this possibility, as not too many people have taken an in depth look at the Wyckoff method.
Good luck,
Vik
The dip below the lower support can be seen as a "Wyckoff spring". Large players let the price dip below the lower support to see if there was any interest in the market, and to gauge the overall market sentiment. This dip was immediately met with buyer conviction, as price rocketed back up into the zone. For those familiar with the Wyckoff method, a Wyckoff spring is a classic signal that distinguishes an accumulation zone from a distribution zone, which is part of the reason I can see this as an accumulation zone.
As many of us know, markup (uptrend) is the phase that follows an accumulation phase.
However, I am not completely bullish yet, as there is a lot of resistance above that has yet to be broken. This is just one scenario that I see as a real possibility of playing out. Just thought that I would share this possibility, as not too many people have taken an in depth look at the Wyckoff method.
Good luck,
Vik