$BTC - Wyckoff Accumulation Schematic Model #2

há 3 dias

Bitcoin is possibly in Phase C of Wyckoff Accumulation Schematic Model #2

Wyckoff Accumulation Schematic Model #2 describes a market phase where accumulation occurs before a significant upward trend. This model is often used to identify potential reversals and entry points, particularly in a downtrend that shows signs of accumulation. Here’s a breakdown of the stages and key components in Schematic Model #2:

Phase A: Stopping the Downtrend
-Preliminary Support (PS): First sign of buying interest that slows the downtrend. Volume increases slightly as buyers step in.
- Selling Climax (SC): The price experiences a sharp decline, reaching an extreme low with high volume. This often marks the lowest point of the downtrend.
- Automatic Rally (AR): After the SC, the price rebounds due to reduced selling pressure and some buying interest. The high of this rally defines the upper range of accumulation.
- Secondary Test (ST): Price revisits the SC area to test supply, often with lower volume than during the SC. This validates that selling pressure has weakened.

Phase B: Building a Cause
- Phase B involves a prolonged consolidation phase. It acts as a "cause" that fuels the future uptrend.
- Multiple Tests and Shakeouts: Within this phase, the price may test both the upper and lower boundaries several times. These tests show attempts to trap weak hands.
- Sign of Strength (SOS) and Minor Back-Up (LPSY): As Phase B progresses, price action becomes tighter, indicating stronger buying interest at higher lows.

Phase C: The Spring
- Spring or Shakeout: Price temporarily dips below the support level established by the SC and ST. This move is designed to flush out remaining sellers and weak holders.
- Test of Supply: Following the Spring, the price should test the previous support level but with low volume, indicating minimal selling pressure. This test confirms the spring’s effectiveness in absorbing supply.

Phase D: The Markup Phase
- Sign of Strength (SOS): Price rallies with increasing volume, breaking above the AR and ST levels, signaling accumulation completion.
- Last Point of Support (LPS): After the breakout, the price may pull back briefly to test the former resistance (now support). These points are often low-risk entries.
- Higher Highs and Higher Lows: Confirm the beginning of a new uptrend.

Phase E: The Uptrend
- Markup Phase: The price enters a sustained uptrend, often breaking previous resistance levels and forming higher highs.
- Continuation of the Rally: This phase is characterized by strong demand and may continue until the distribution phase begins.

Wyckoff's Accumulation Schematic #2 is commonly seen in longer consolidations and is effective for identifying potential reversals. This schematic differs from Schematic #1 mainly in the presence of a Spring, which is more aggressive and serves as a key entry confirmation.