BTCUSD Accumulation, Breakout & Markup

28 set 2017

BTCUSD



BTC supply and demand analysis over a long period of time shows us some interesting trend patterns developing over time and repeating themselves. There happen to be four phases of price movement: accumulation, markup, distribution and markdown. Understanding the price position for the broad market and the individual stock before initiating a trade is rather important. Think of it this way, you wouldn't go down to your favorite retail store to pick up a brand new TV before fully understanding the specifications on that TV and what you will get in value for your money. The same can be applied here. Long positions are usually preferred when the broad market is in a markup stage, which we can see quite evidently within the price history of BTC.
Outside of the markup stage, there are about five other buy points that offer a good risk-reward ratio. Aggressive traders attempt to pick a bottom by buying on the spring. Trend followers would buy on the breakout that signals the beginning of a trend. Once the breakout has completed its' cycle, chart enthusiasts can look into establishing long positions during the throwback, re-accumulation phases or corrections.