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Bitcoin and its shifting patterns have pushed experts and traders to reassess the king coin’s moves on a daily basis. The coin’s every move is studied across multiple charts, from an excessively bullish market to entering a bear market, the most recent death cross, and the approaching Golden Cross. But there is one that appears to be becoming a reality from mere conjecture, raising the question, “Is Bitcoin really in a Wyckoff Accumulation?”
Bitcoin in Wyckoff Accumulation?
Seems to be. Rekt Capital recently analyzed the pattern, reiterating that while this accumulation does seem to occur, it is still on a short-term basis.
A standard Wyckoff accumulation pattern specifies a number of levels that must be satisfied. This is in conformity with the criteria of the pattern’s several phases. Bitcoin has already verified Phases A and B on the daily chart, and it appears to have proven Phase C as well. This upward advance established a new resistance level around $36k, which is critical as the price approaches $40,000. Rekt Capital also tweeted about it.
“BTC needs to Weekly Close above ~$34800 level as that would mean BTC successfully reclaimed its Weekly Higher Low and 50-week EMA support This is a confluent demand area that is crucial to sustaining the bull-side momentum that originated in the ~$29000 lows”
This resistance must be broken as soon as possible in order for the coin to enter Phase D. BTC is currently on the verge of an exciting Phase C. Bitcoin has already created its third higher bottom in Phase C by effectively converting $33k from resistance to support. In other words, this is confirmation that Phase C has been finished. A higher high of $38k and a retest of $36k are possible in Phase D.
This is where it gets tricky.
Bitcoin in Wyckoff Re-Distribution?
This was also an option. When the king coin is shown on the weekly chart, the movement shows a fairly negative momentum. The resistance test and descent in case of re-distribution was a higher high of $38k and retest at $36k in Phase D of accumulation. If the currency manages to break through $38,000, it will rise, but if it falls, it will simply continue its downward trajectory. As previously said, longer periods retain more value, however if Bitcoin does not lose $28k as support, re-distribution will become meaningless.
Going forward it is necessary for investors to closely observe said levels to ensure minimum losses.