Bitcoin price has risen since reaching a low of $ 8,455 on February 26. Both the Wyckoff accumulation method and the Elliot wave theory consider this increase to be part of a larger correction.
Highlights of Bitcoin price
- BTC price may follow Wyckoff events.
- It is currently near the end of phase B of the accumulation process.
- Price is completing wave B of the A-B-C bearish wave.
The Wyckoff distribution theory refers to a proportional effect for every cause in the market. Thus, after each “accumulation” period, there is a period of “price increase,” “distribution” and finally the “price reduction” period. More specifically, each stage has its own unique characteristics, and is used by the famous trader TraderX0 to outline a possible movement of the Bitcoin price.
I still believe price is in one large accumulation phase / range performed why I wasn't calling moonshot in Feb.
If we are dropping lower then its a matter of schematic 1 or 2, until invalidated.
Absolutely shall be buying 6s & 7s
FYI – Put the volume profile on yourself! pic.twitter.com/XCUicykTZX
– TraderXO (@ TraderX0X0) March 2, 2020
Let's dive into Bitcoin price action and use this method to predict its future price.
Wyckoff method
The accumulation of the Wyckoff method takes place in five stages, outlined in the letters A to E. Accordingly, the Bitcoin price is currently in Phase B.
BTC / USD chart for 2 days | Source: TradingView
Phase A began with “Selling Climax” on October 24, 2019, and was completed when “Automatic Response” occurred. These values are used to outline the areas of support and resistance of the range.
In phase B, the price created a slightly lower low in the “Secondary Test,” followed by an increase completed at a high level. If the price continues to follow this accumulation, a move to confirm the $ 9,500 zone is possible, then the price will drop to mark the start of phase C.
During this phase, there are two possible movements, outlined by dashed and solid lines. The dashed line indicates that a lower low will be created, and bring in maximum profits for investors to buy at that level, while the solid line (more common) will create higher lows. And the results of both are the same, as BTC is expected to increase thereafter.
Phase D is a breakout above the “Automatic Response” level to show strength, and Phase E will bring prices to new territory.
We also make a similar prediction using a five-wave Elliott squad. Are there similarities when we link these two directions together?
Elliott Wave
The whole phase B, starting from the “Secondary Test” stage, outlined the formation of the five-wave Elliott model. It looks like we are now in wave B, which is expected to end near $ 9,450, which perfectly fits the Wyckoff distribution model.
In addition, the daily RSI is approaching the level 50 from the bottom to the top, so it may be denied to reach this level and signal the start of the C wave.
Daily BTC / USD chart | Source: TradingView
Conclude
The price movement of BTC since October 2019 is almost identical to the Wyckoff accumulation model. Accordingly, the price will soon reach a high of nearly $ 9,450 before falling to $ 7,500 and possibly $ 6,800, where it is expected to create a final low for Bitcoin before the price starts a new uptrend.
You can see the price of Bitcoin here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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