Hey Binance Square family! š
Bitcoin (BTC) is currently exhibiting a classic Wyckoff structure on the weekly chart, prompting traders to question: Are we entering a distribution phase or is this a reaccumulation before the next leg up? Let's delve into the technicals to understand the potential scenarios.
---
š§ Understanding the Wyckoff Method
The Wyckoff Method is a technical analysis approach that interprets market cycles through phases of accumulation, markup, distribution, and markdown. By analyzing price and volume patterns, traders aim to anticipate future market movements.
---
š Current Technical Overview
Current Price: ~$105,488 USDT
24h Change: +0.44%
Intraday High / Low: $105,709 / $104,209
On the weekly chart, BTC has formed a structure that aligns with Wyckoff's distribution pattern, characterized by:
Buying Climax (BC): A sharp price increase followed by heavy selling.
Upthrust After Distribution (UTAD): A false breakout above resistance levels.
Bearish RSI Divergence: Momentum weakening as price reaches new highs.
Decreasing Volume: Indicating diminishing demand.
---
š Alternative Scenario: Reaccumulation
Alternatively, the current structure may represent a reaccumulation phase, suggesting that the market is consolidating before another upward move. Key considerations for this scenario include:
Support Holding at $101,000 ā $104,000: Maintaining these levels could indicate strength.
Price Reclaiming $112,000 with Strong Volume: A move above this level may confirm a bullish continuation.
---
š Key Levels to Watch
Resistance: $112,087 (UTAD level)
Support: $101,000 ā $104,000
Critical Support: $87,000 ā $89,000 (0.618ā0.66 Fibonacci retracement zone)
A weekly close below $87,000 would invalidate the reaccumulation scenario, suggesting a potential markdown phase.
---
š§ Final Thoughts
Bitcoin's current price action presents a pivotal moment. Traders should monitor key support and resistance levels, volume trends, and momentum indicators to discern the market's next move. As always, ensure you conduct thorough research and manage risks appropriately.
Happy trading! šš
---
*Disclaimer: This is not financial advice. Always conduct your own research before making investment decisions.*
