Here’s an analysis on bitcoin by VincePrince on tradingview.com, one of the best I’ve seen in a while.
Hello Traders Investors And Community,
Welcome to this analysis about Bitcoin , we are looking at the 4-hour timeframe perspectives, I detected worthwhile signs lastly that will affect the Bitcoin price massively in the upcoming times. The news over the previous days and weeks where all very mixed, higher regulatory concerns came up from societies wanting to restrict Bitcoin mining or Bitcoin trading at all there remained other places such as El Salvador making Bitcoin legal tender now. Also important is that the institutional interest in Bitcoin and Cryptocurrency actually increased while there are already well-known institutions such as Microstrategy accumulating more Bitcoin bigger banks also took an eye on Bitcoin and Cryptocurrency. All this mixed news and growing institutional interest while the Bitcoin price remains in an accumulation pattern is characteristic for a Wyckoff accumulation, therefore I detected the important phases, underlying accumulation dynamics, and what we can expect now with Bitcoins destinies.
This was the time where heavy FUD entered the market and nearly everybody was bearish as erratic Twitter tweets moved Bitcoin to the south and this bearish volatility to the downside emerged that finally formed the preliminary bottom at around 30000 imagining that around 400 Billion US-Dollar liquidated out of Bitcoin at this point since the higher high in the uptrend before. This is also an oversold condition and as the AR (Automatic Reaction) that emerges after the actual SC (Selling Climax) shows Bitcoin with the first counterreaction against the heavy bearishness and oversold condition, it was also the place where the first bigger institutions entered into as it is normally the case in such an accumulation dynamic. Now after this automatic rally with demand firstly pushing higher the secondary test occurred with bearish pullbacks testing the previous support which is normal in such a Wyckoff accumulation as there is still supply in the market that easily pushes the price downward such a pullback settled also with Bitcoin here.
This is a characteristic phase of institutional interest and big players accumulating in the market, it is also the phase where a cause is built in the public opinion that the downtrend will remain and that there will come new lows and the market will fall more however it is just to mislead the public about the fact that big players and smart money actually accumulate in this range which is shown with the price-rallies within. Further, the movements in which new supply enters and pushes lower to form the ST(Secondary-Test) of which there are most often more than one, this was also the case here, always when new lows have been made in the structure within the phase B further smart money and big whale interest moved into accumulating and showing up with these rallies while the vast majority still thinks the price will fall further after this phase.
This is the phase in which the smart money and whales actually test the market if it is ready to mark up and a new uptrend can establish or the supply dynamic is still too high for the price to actually reverse. In this phase, the price-action makes a move below the previously established support in phase A and phase B with a volatile test of even lower levels, when the supply is not high enough to remain below this zone the price reverses quickly as the institutional accumulate at these very cheap prices and the price snaps back above into the previously established range which also happened with Bitcoin here, at this time the news for Bitcoin remained extremely negative while it was actually the best zone to move into the market as it is in such a Wyckoff accumulation. The spring is followed up by a test above the previous support in the structure, when the price action remains above this support the test is successful and price-action is ready to go higher as was exactly the case with Bitcoin here.
It is the current phase Bitcoin is currently in and as the previous spring and test after that moved on with the price action holding above the support it is the phase now where the accumulation by smart money and whales happened and the price is about to go higher, at this point still many of traders think the price-action will do further bearishness and lower lows. However, in this phase, the price-action shows actual SOSs (Sign-Of-Strength) and LPSs (Last-Points-Of-Supply) as marked in my chart where the supply decreases and demand slowly begins to increase. As Bitcoin is holding above the previous supports this phase is right about to move and it is likely that there will come an increase of bullishness in the upcoming times within this phase.
The final phase then, in the upcoming times now will be phase E, it is the phase in the Wyckoff accumulation where the public actually gets aware of the possibility of further bullish continuation to the upside. In this phase, it is characteristic that the price-action moves above the previous resistances established in phases A and B and manages to stay above this level to form a BU (back-up) and further SOSs (Signs-Of-Strength) as well as LPSs (Last-Points-Of-Supply). This phase shows also normally an increase in volatility and volume and when the price action remains above these very important resistances the phase finally completes the whole Wyckoff accumulation and a bigger part of the public gets aware of it. As Bitcoin is now in phase D the phase E will begin when the breakout above this 40600 level takes place and Bitcoin actually manages to stay above this level.
Now as I have pointed out the main phases that Bitcoin came up within this decisive Wyckoff price-action-accumulation it is necessary to realize that such an accumulation has certain characteristics and it is always important as a trader to be on the right side to not get overwhelmed by circumstances when the market moves in the other direction as expected. Not everything can be a Wyckoff accumulation or also distribution the right measurements are important because otherwise can also be just a continuation pattern however in this case there is clear evidence given that the Wyckoff accumulation of Bitcoin now entered the phase D and is likely to show up with the further price-actions within the phase D and after that in the phase E.
In this manner, thank you for watching my analysis about BITCOIN current Wyckoff Accumulation and what are the important phases here; will be great when you support it with a like and follow or comment, great contentment for everybody supporting, all the best!
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Information is only educational and should not be used to take action in the market.