Happy Friday.
The trading methodology I use is Wyckoff/Point and Figure. It would appear BTC is in the midst of a Wyckoff Distribution Phase at the current time. Based upon the chart, the sudden price mark-up which peaked out at $9,460 both exhausted the cause built from the accumulation phase, and signaled the preliminary supply for the start of a distribution phase. Further, the Buying climax established yesterday at $10,060 and the Automatic Reaction which dropped the price immediately after to $8,120 appears to have established the prelim trading range for this distribution phase. Interesting side note is the Parabolic SAR flipped bearish right after that drop to $8,120, and the Parabolic SAR values are basically riding the upper trendline of the formation.
I would expect a retest of the lower end of the trading range ($8,120) and potentially a Sign of Weakness (similar to a spring) in the near future. I'm also potentially looking for a short position right around the $9,980 level with a tight stop in the event of an Upward Thrust (the opposite of a spring).
The trading methodology I use is Wyckoff/Point and Figure. It would appear BTC is in the midst of a Wyckoff Distribution Phase at the current time. Based upon the chart, the sudden price mark-up which peaked out at $9,460 both exhausted the cause built from the accumulation phase, and signaled the preliminary supply for the start of a distribution phase. Further, the Buying climax established yesterday at $10,060 and the Automatic Reaction which dropped the price immediately after to $8,120 appears to have established the prelim trading range for this distribution phase. Interesting side note is the Parabolic SAR flipped bearish right after that drop to $8,120, and the Parabolic SAR values are basically riding the upper trendline of the formation.
I would expect a retest of the lower end of the trading range ($8,120) and potentially a Sign of Weakness (similar to a spring) in the near future. I'm also potentially looking for a short position right around the $9,980 level with a tight stop in the event of an Upward Thrust (the opposite of a spring).