Wrote the schematic of a Wyckoff accumulation on the chart of bitcoin.
Schematic explanation:
Starting with a sellng climax (SC) and a secondary test (ST) where volume is still great. After phase a completes, volume starts to diminish and liquidity gets created by the secondary test in phase B (ST B). This liquidity trendline gets taken out by the forming of the SPRING. Here volume starts kicking in again and structure to the upside gets broken.
What’s next: very often after a spring is created and we break structure to the upside, we create a sign of strength (SOS) and come back down towards the spring to test it (black arrow). If this will happen is still uncertain.
Big picture:
The reason I’m looking for a reversal point (Wyckoff accumulation is a point of reversal), is because bitcoin has just entered my 3D point of interest, ranging from around $29.3k $34.5k. This is where we should see bitcoin reverse and start pumping again. If we drop below this point of interest however, we could be looking at a lot more downside in the near future.
Schematic explanation:
Starting with a sellng climax (SC) and a secondary test (ST) where volume is still great. After phase a completes, volume starts to diminish and liquidity gets created by the secondary test in phase B (ST B). This liquidity trendline gets taken out by the forming of the SPRING. Here volume starts kicking in again and structure to the upside gets broken.
What’s next: very often after a spring is created and we break structure to the upside, we create a sign of strength (SOS) and come back down towards the spring to test it (black arrow). If this will happen is still uncertain.
Big picture:
The reason I’m looking for a reversal point (Wyckoff accumulation is a point of reversal), is because bitcoin has just entered my 3D point of interest, ranging from around $29.3k $34.5k. This is where we should see bitcoin reverse and start pumping again. If we drop below this point of interest however, we could be looking at a lot more downside in the near future.