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Bitcoin price is trading at resistance currently, and it could be the last stop before massive price mark up, according to a Wyckoff accumulation schematic
Take a look at the shocking comparison to the schematic below and learn more about the mechanics behind “Wyckoff logic.” Plus, find out what might happen next if the schematic is accurate.
Bitcoin Price Action Mimics 9 Months Of Wyckoff Accumulation
The top cryptocurrency by market cap went from being pronounced dead following the FTX collapse, to suddenly showing signs of coming back to life.
Bitcoin price is up more than 60% from 2022 lows and around 50% year-to-date. It has outperformed the stock market, gold, and just about every other asset class in 2023.
Related Reading: Bitcoin Breaking Above $26K Could Cancel Crypto Winter
The price increase might only be the beginning according to a Wyckoff accumulation schematic, which closely mimics the price action in Bitcoin since June of last year.
A nearly 50% plunge per coin in June 2022 brought BTC to a potential “selling climax.” The support level held for some time, but ultimately was swept in what is referred to in Wyckoff theory as a “spring.”
After the spring, the asset being accumulated should rise to resistance, and BTCUSD is doing just that. What happens next will confirm or invalidate the conditions of the schematic.
Is Bitcoin about to jump the creek? | BTCUSD on TradingView.com
What Happens After Crypto “Jumps The Creek?”
If Bitcoin price continues to follow the schematic, what comes next? According to Wyckoff theory, there are four phases in a market cycle: accumulation, mark up, distribution, and mark down.
Mark up comes after an extended accumulation phase, which could lead to BTCUSD increasing dramatically over a short period of time. But it has to “jump the creek” first after pushing through the current resistance level.
Related Reading: Why Bitcoin Could Explode To $40,000 Per Coin In A Flash
Wyckoff logic focuses on what “the Composite man” is doing behind the scenes. The Composite man is a representation of smart money and whales who control the underlying dynamics driving market uptrends and downtrends.
The Composite man is especially deft at cloaking their movements and taking advantage of extremes in supply or demand. For example, smart money carefully accumulates assets at the lowest prices and distributes them on the market at the highest profits.
Bitcoin price will have spent nine full months in accumulation, if mark up follows. Considering the length of time that BTC has been in an accumulation phase, the mark up phase that follows could be massive. The last time BTCUSD spent this long in an accumulation range, was 2015. Bitcoin rallied from $160 per coin, to $20,000 when it was all said and done. The cryptocurrency became a household name.
This time around, Bitcoin’s current low was $16,000. A similar move would take the top cryptocurrency by market cap to nearly $200,000 per BTC. Such results aren’t likely again due to the law of diminishing returns, but a sizable move is possible nonetheless.
According to this Wyckoff schematic, #Bitcoin is about ready to “jump the creek” after nearly nine months of accumulation. $BTCUSD pic.twitter.com/sR0mSWoums
— Tony “The Bull” (@tonythebullBTC) March 16, 2023
Follow @TonyTheBullBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice. Featured image from iStockPhoto, Charts from TradingView.com