The Wyckoff Method is a technical analysis approach to navigating the financial markets based on the study of the relationship between demand and supply forces. It was first developed by Richard D. Wyckoff, a trader and market forecaster who started in the business in 1888 as a 15-year-old stock runner.
We believe the Bitcoin worth is within the Re-Distribution stage. And there's a high chance that we'd see the Bitcoin sell-off continue within the returning days.
In this Bitcoin analysis, we'll be victimization the Wyckoff distribution as a backbone to create a pessimistic prediction for Bitcoin and observing the key levels to watch! Bitcoin continues to be commercialism well inside the downward channel. This downward channel can even be known as a pessimistic flag pattern. Despite, however, you determine it, it still points to a deeper retracement of the Bitcoin worth within the returning days. The key level to observe is that the base or support of the channel. We would like to visualize Bitcoin break and shut below this support to substantiate the beginning of the sell-off within the Bitcoin worth.
Bitcoin dominance as we've shared with you before. We have to go daily for this and as we mentioned before this trend reversal in Bitcoin dominance. We were coming down in this blue channel, we came down and this, as we established this line of support, broke it through. Created a line of resistance and eventually broke through and off to the races to when Bitcoin dominance surged up to 72. Now I’m kind of seeing the same trend reversal pattern down here with Bitcoin reversal. We think this is a prerequisite before we get into the big Bitcoin move so as we were coming down it was almost in free fall. Here we paused and checked out at this 50 when these two lines intersected but otherwise it was a free-for-all a free fall moment in the Bitcoin dominance during our Altcoin season. We hung out for about a week here at the 45 creating that level we came down to what was low, so far 40 came back up. Tested it came back down and we're now battling with this 46 zone. Again we think it's an absolute prerequisite that we get above and close above this let's call it.
Bitcoin technical analysis:
A strong signal that Altcoin season is dead. Now for a time for Bitcoin to steal the show for some amount of period weeks months. That's going to be the catalyst to push us forward we've got a few things going on here. A lot of people thinking we're going to have to wait till the end of summer that kind of coincides with that whack-off it took two months. The first time when we're at the top around sixty thousand dollars for that whack-off event to take place before it pushed us lower. We're only about a month into that now we might need to wait for this Bitcoin to battle across is it going to happen now or do we come back down before we test up. We don't know but that is going to be one of the key things for confirmation from me. We want to see Bitcoin leave the alts behind. We don't think we are going to get much movement in the Bitcoin price until that happens.
Bitcoin 21 WMA:
So let's take a look 21-week moving average leveled off way up here at 47 000. Interesting so let's see how we interact with that. We think coming through that will probably pause there for a little bit 48 000. Let’s see even the volume backs it up so from that range of like 43 to 48 once we break through there's going to be a very quick move there up to 48.50. We think but ultimately I think we continue to crash through this year more and work our way up towards all-time highs. Let's take a look we'll take a look at the fear and greed index and we see it's looking the strongest it's been for quite a while it's up to 33.
Bitcoin fear and greed index:
The strongest it's been for quite a while it's up to 33. So we've broken that trend right there it was kind of maxing out in the high 20s. It was in this range from down to 10 to 20 and we have broken above that what signifies the fear is starting to leave the market. Bulls are starting to step back in and so kind of demonstrate that we had that accumulation phase this is where the strong hand stepped in. The weekends got scared got shaken out and for those of us who are resilient, we stayed in it like I suggested you should and we're looking good.
So before we close out I thought this was just a great reminder of the long-term situation thing. Here in Bitcoin 2010, no one uses it.
- In 2012 only computer nerds use it.
- IN 2013 and the famous Silk Road days only drug dealers use it
- 2014 money launderers use it.
- 2017 there are gamblers.
- 2019 a small percentage of the population starts using it to protect their wealth against the excesses of central banks.
- 2020 small companies start getting in you get your micro strategies etc
And now we have small countries coming in with el Salvador 2021. That is just an unbelievable and impressive progression in an incredibly short amount of time. It’s just really important to understand that what you think we're going to have written here for 2022. what is going to what's going to be the next group of people that come in or the institutions or entities that come on in?