{"id":426685,"date":"2020-06-09T17:30:10","date_gmt":"2020-06-09T17:30:10","guid":{"rendered":"https:\/\/uniquehot.com\/?p=426685"},"modified":"2024-06-11T07:48:12","modified_gmt":"2024-06-11T07:48:12","slug":"bitcoin-price-wyckoff-distribution","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/bitcoin-price-wyckoff-distribution\/","title":{"rendered":"Dump Incoming? Bitcoin Price Action Matches Wyckoff Distribution Model"},"content":{"rendered":"
Bitcoin price<\/a> has been consolidating after its last strong push higher for over forty days now. After many attempts to break up through $10,000, each rejection has caused the price action to closely resemble a distribution schematic designed by financial market expert, Richard D. Wyckoff.<\/p>\n If the current price action is indeed distribution, a massive dump could be incoming that marks down the cryptocurrency’s prices to levels below.<\/p>\n Resistance at $10,000 continues to swat back any attempts made by the first-ever cryptocurrency to breakthrough. Three separate high timeframe attempts have occurred since mid-2019, and on lower timeframes, Bitcoin has made several tries since it reached this level nearly six weeks ago.<\/p>\n Each one of those recent attempts, along with each rejection back to support, appears to closely resemble a distribution schematic designed by Richard Wyckoff.<\/p>\n Related Reading | Decision Time: Top Crypto Traders Expect Massive Bitcoin Move In Days Ahead\u00a0<\/a><\/strong><\/em><\/p>\n According to Wyckoff theory<\/a>, assets go through specific phases as part of a greater cycle. When assets reach low enough prices, smart money investors begin accumulating assets slowly, in what the market expert and author refers to as an accumulation phase.<\/p>\n Once investors have sufficiently accumulated enough holdings of the asset, the markup phase begins where prices rise to reflect demand beginning to outpace supply.<\/p>\n After prices reach an attractive level, and profits have piled up, those same smart money investors begin to sell the asset to secure profits. This is called distribution.<\/p>\n Smart money investors<\/a> don’t dump their holdings all at once, they let price action driven by the herd of buyers late to the game push up into their sell orders.<\/p>\n Each time these sell orders are hit, the asset price falls again to support.<\/p>\n This same sort of setup is taking place right under the noses of unsuspecting crypto traders, and it could lead to a major dump once distribution is over and the markdown phase begins.<\/p>\n <\/p>\n According to the chart above, the first major push up through $8,600 acted as the preliminary tap of supply. Price then fell to the support line where an automatic reaction took place.<\/p>\n At the first touch of resistance \u2013 in this case, once Bitcoin price<\/a> broke above $10,000 \u2013 the buying climax sent prices tumbling again. The support level was almost lost, showing a sign of weakness.<\/p>\nBitcoin’s Repeated Failure To Break Above $10,000 Resembles Distribution<\/h2>\n
Price Action Closely Mimics Wyckoff Distribution Schematic<\/h2>\n