Hello, dear subscribers!
Yesterday we told about the negative Bitcoin scenario. The price bounced off the key support level of $30000 because a lot of people believed in this level and took a great number of limit orders here. Two weeks ago we have done the article on TradingView about the Wyckoff accumulation and distributions scenarios. Today let's consider another one interesting scenario of Wyckoff's REaccumulation using the current Bitcoin price action.
The Reaccumulation scenario is a hybrid of accumulation and distribution. The key points:
1. Preliminary Supply - after a huge uptrend the first significant pullback.
2. Buying Climax - price spread is large, all demand is satisfied by major sellers.
3. Secondary Test - the price goes back to the point of the preliminary supply pullback. can be multiple.
4. Automatic Reaction - the sellers pressure absorbed by large investors because the BTC price is small in comparison with the buying climax point, as a result the price pumps to the resistance.
5. Spring - it is not obligatory point, but do not wonder if this point is the case. This is the support failure point.
6. Sign of Strength - the area of multiple tests of the resistance with the last point of support.
The final phase is the massive price growth. The main reason of this price action is when the price growth was too intensive, a lot of investors decided to take the profit and to buy the Bitcoin at lower price. During this phases the demand reaccumulates, absorb all supply and pushes the price to continue the growth
The big danger could be here, because the reaccumulation can be confused with the distribution. You shoud pay attention to the Sign of Strength area beacause this is the key point in the further trend defining.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions.
Yesterday we told about the negative Bitcoin scenario. The price bounced off the key support level of $30000 because a lot of people believed in this level and took a great number of limit orders here. Two weeks ago we have done the article on TradingView about the Wyckoff accumulation and distributions scenarios. Today let's consider another one interesting scenario of Wyckoff's REaccumulation using the current Bitcoin price action.
The Reaccumulation scenario is a hybrid of accumulation and distribution. The key points:
1. Preliminary Supply - after a huge uptrend the first significant pullback.
2. Buying Climax - price spread is large, all demand is satisfied by major sellers.
3. Secondary Test - the price goes back to the point of the preliminary supply pullback. can be multiple.
4. Automatic Reaction - the sellers pressure absorbed by large investors because the BTC price is small in comparison with the buying climax point, as a result the price pumps to the resistance.
5. Spring - it is not obligatory point, but do not wonder if this point is the case. This is the support failure point.
6. Sign of Strength - the area of multiple tests of the resistance with the last point of support.
The final phase is the massive price growth. The main reason of this price action is when the price growth was too intensive, a lot of investors decided to take the profit and to buy the Bitcoin at lower price. During this phases the demand reaccumulates, absorb all supply and pushes the price to continue the growth
The big danger could be here, because the reaccumulation can be confused with the distribution. You shoud pay attention to the Sign of Strength area beacause this is the key point in the further trend defining.
DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions.
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