Two weeks ago I made analysis according to Wyckoff approach. You know that I study his books. According to some features I concluded that the Bitcoin now is in the huge redistribution phase. You can see this analysis via link under this article.
Today I want to show you this analysis update. On the BTCUSDT chart of the WhiteBit exchange you can see all the Wyckoff events. The main reason that the Bitcoin is in distribution is the UTAD event – the false breakout above the upward trading range. After this event the price formed the the strong downtrend which is supported by the increasing volume. The volume became even higher at the breakdown after the SOW event. Not the price is consolidation just below the trading range and formed some kind of it’s retest, called LPSY. Thus, I suppose that the range is finished and the BTC will show us the markdown phase to the final target of this bear market.
According to classical TA the current upward trading range looks like the bear flag pattern. The novice traders study these patterns firstly but they don’t understand the reasons why this patterns lead to the particular price moves. The Wyckoff approach give us the fundamental understanding why the patterns work in trading.