Stimulus Driven Wyckoff Correction, Continuation of Bull Cycle?

2021年6月25日

The recent price action in BTC is obviously a classic Wyckoff pattern driven by institutions. This is clear now, however, why did this happen? My thoughts are that the institutions saw BTC as an easily manipulated and unregulated vehicle to get at the Billions of dollars in stimulus payments out of the hands of retail investors who, many out of a job, were looking to make some easy $ during the lockdown. You can see that as the direct payments were distributed, there was a pump in the price of BTC. So let's just assume this is the case, it would appear that the recent decline is a correction to where the bull market would have been if no bubble had occured.

So is this the bottom?

Not so fast, risk-on assets are feeling the pressure as banks are flooded with cash and bond prices and the dollar index continues to rise. The threat of deflation and regulation still looms large and transitory inflation is waning, very crucial next few weeks.