The BTC hourly chart displays an accumulation and manipulation phase that could lead to a distribution phase based on Power of Three technical patterns.
The BTC price reached a value of $87,190.05 while traders monitor possible profit-taking indicators near the resistance level at $88,260.44.
The manipulation phase received validation when prices briefly fell below recent lows which now initiates a bullish trend.
The bitcoin hourly chart currently displays a clear technically sound PO3 (Power of Three) formation which market technicians use to analyze market phases starting from Accumulation through Manipulation to Distribution.
As of the latest data, BTC is trading at $87,190.05, marking a 2.5% price increase within the last 24 hours. This movement occurs between a key support level at $84,739.54 and a resistance cap around $88,260.44, indicating a tightly observed price channel.
An extensive sideways price movement observed at the beginning of the time period indicates major market players constructing their positions through this accumulation zone. The area shows minimal market movement and low price fluctuations while maintaining equilibrium between traders until a possible directional shift occurs.
https://twitter.com/TATrader_Alan/status/1914182324813701580 Manipulation Highlights Liquidity Sweep
Shortly after accumulation BTC fell momentarily below recent lows which indicated the manipulative stage had begun. The portion of this pattern behaves as a liquidity sweep which traps short sellers before they can exit properly. Price manifestations within this period form a downward wick which suggests traders had their orders assessed at various key levels before stop-loss orders were triggered thus validating the PO3 concept.
Bitcoin Nears $88K Amid Distribution Signals
Post-manipulation BTC generated a quick upward movement which started its way into what shows indications of becoming a distribution phase. During this price and volume increase period investors who held positions in the market release their assets which indicates a distribution phase.
The price increased to $87,000+ before hitting the potential resistance level at $88,260.44. Traders now monitor if market participants will start taking profits at this point. Scientific observers analyze this market pattern for indicators that will indicate whether the trend will persist or reverse.
