Bitcoin has been trading sideways for the better part of two weeks now. Yesterday, there was a short-lived break out through the FOMC resistance, which got sadly sold off quickly.
Since the break out was only minor & short-lived, there's a probability that we're currently trading in a Wyckoff distribution pattern, which could signal that this is area is the Bitcoin top for the foreseeable future. Check out the theoretical schematic below.
If we'd follow this Wyckoff distribution pattern, that would indicate that there's still one more move up before the real sell-off. As long as the price does not break below the AR-support (purple) before breaking above the UT-resistance (yellow), this pattern is valid. Furthermore, the UTAD break out can't reach much higher than the UT top ($30k?) before being sold off.
Consequently, the UTAD top would be in an area of heavy resistance from the last two years of trading, see yellow area below.
Do you think we're in a Wyckoff distribution pattern? Are we breaking down? Share your thoughts below.
Note: I'm still bullish on BTC, especially in the long-term. However, I think it's valuable to look at different perspectives of the market, even if it goes against my bias.
Since the break out was only minor & short-lived, there's a probability that we're currently trading in a Wyckoff distribution pattern, which could signal that this is area is the Bitcoin top for the foreseeable future. Check out the theoretical schematic below.
If we'd follow this Wyckoff distribution pattern, that would indicate that there's still one more move up before the real sell-off. As long as the price does not break below the AR-support (purple) before breaking above the UT-resistance (yellow), this pattern is valid. Furthermore, the UTAD break out can't reach much higher than the UT top ($30k?) before being sold off.
Consequently, the UTAD top would be in an area of heavy resistance from the last two years of trading, see yellow area below.
Do you think we're in a Wyckoff distribution pattern? Are we breaking down? Share your thoughts below.
Note: I'm still bullish on BTC, especially in the long-term. However, I think it's valuable to look at different perspectives of the market, even if it goes against my bias.
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