In this episode of NewsBTC’s daily technical analysis videos, We compare Bitcoin’s price movement with Wyckoff accumulation schemas and price cycles.
Check out the video:
VIDEO: Bitcoin Price Analysis (BTCUSD): September 8, 2022
This video gives an in-depth look at the Bitcoin market cycles using Wyckoff Theory and other cyclical instruments.
What is the real story behind Bitcoin Mark Down and The Composite Man?
Wyckoff Theory is founded on the notion that large-scale operators, which he called “the Composite Man”, outsmart retail traders all the time. The market is known also for its phases, of distribution and accumulation, as well as mark up/mark down phases in between.
Recent price movement continues to look a lot like Wyckoff accumulation. Price reached $17,500 selling point after breaking through preliminary support. What we potentially just saw this week was a secondary test in phase B. that’s the good news. Unfortunately, it could take a while before we see prices rise again.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
Crypto Winter Could Be Overthrown By A Spring
That was also just one of Wyckoff’s accumulation schematics. The spring is another schematic. According to the diagram, the spring would be around December while the breakout would take places in April.
This is particularly notable because it was the time when Bitcoin hit its bottom in 2018. It also marks when the accumulation phases finished in 2019. It is also interesting to note that Bitcoin has used December as a timing factor for its tops and bottoms throughout its history.
Is there a chance we will get a spring?Source: BTCUSD at TradingView.com | Source: BTCUSD on TradingView.com
Read Related Reading| ETHUSD September 6, 2022
Wyckoff, Gann and Other Technical Analysis Greats
The 2017 peak occurred in December 2017, which is why we’re currently testing it for the umpteenth consecutive time. The month of December mysteriously was one of WD Gann’s favorite months to look for tops and bottoms, and it was due to how the Sun conjuncts Mercury while in Sagittarius.
Wykoff and Gann were both great financial thinkers. These two are well-known as the financial giants Charles Merrill Lynch, Charles Dow of Dow Theory, Ralph Nelson Elliott, who invented Elliott Wave Theory, and Charles Dow of Dow Theory.
Gann’s methodology was the most mystical of them all. You can see how one of Gann’s tools, Gann fan was executed flawlessly in this example. It is the breakthrough from the bear markets and an amazing 500% increase.
Gann's tools are based upon geometry, angles and time. Source: TradingView.com, BTCUSD| Source: BTCUSD on TradingView.com
What to Make of the BTCUSD Current Market Cycle
As Wyckoff, Wyckoff, and other luminaries believed markets are cyclical. When an asset has become too expensive, the cycle starts with accumulation. When demand exceeds supply, mark down begins. This is when the retail distribution begins. Supply outweighs Demand.
Although it sounds easy, this is how the system works. Based only on the visual inspection of history and how it has sounded in the past, there is a possibility that we might be near accumulation. We will mark up soon enough.
It seems like it is almost time to start another bull run. Source: BTCUSD on TradingView.com | Source: BTCUSD on TradingView.com
NewsBTC Trading Course: Learn how to perform crypto technical analysis. To access this educational program, click here
Follow @TonySpilotroBTC on Twitter or join The TonyTradesBTC TelegramFor exclusive market information and technical analysis education, subscribe to our newsletter. Please note: Content is educational and should not be considered investment advice.
Featured Image from iStockPhoto. Charts from TradingView.com