The market has just gone through a sell-off, but in the long term, we still have clear signs of a reaccumulation structure:
Phase A:
- The BC and CHoCH positions have seen a strong increase in supply, but the price did not break the support area around $2000.
- The volume has decreased, but the price has still surpassed the resistance level created by BC, indicating the exhaustion of the selling side.
>> Signs indicate that large institutions are absorbing supply from weak hands >> characteristics of the reaccumulation structure.
Phase B:
- From February 2022 to March 2023, the volume increased significantly, indicating a large supply being pushed into the market, but the price structure formed higher lows. This shows a strong absorption of supply as the market entered an oversold state.
- From March 2023 to October 2023, the volume has decreased significantly while the price continues to rise slightly, suggesting that supply is becoming scarce.
Phase C:
- From late 2024 until now, there has been a downtrend with increasing volume, along with a wider spread of large red candles compared to the average. This is a sign of shake-out activity and we are likely in a potential phase C.
>>> All these characteristics indicate signs of a reaccumulation structure on the Weekly timeframe, so the upcoming scenario is $ETH will test the support area around $1500 to form phase C as LPS and then officially enter the growth phase - that is, phase D.
Source Tiktok: @wyckoffmarketview
