In this last post of the series, we’ll be taking a look at the early similarities between the Wyckoff pattern, an old chart from the 20th century, and the Bitcoin price action for the last nine months.
A small group of crypto analytics and enthusiasts are alleging that the crypto market is being heavily manipulated. Although manipulation is to be expected in a largely unregulated market, it is astonishing how Bitcoin has mirrored the Wyckoff charts almost to a tee.
The inventor of the Wyckoff pattern, Richard Wyckoff, understood the market moved in four stages cycles. He also believed that big investors designed these cycles to exploit novice and uninformed traders.
Is there manipulation going on? Or is it just a conspiracy theory, and the Wyckoff similarities mean the model reflects simple market psychology?
Wyckoff crystal ball
Despite the many theories, if Bitcoin maintains a similar structure to the Wyckoff pattern, we should see new all-time highs in the short to mid-term. Following the Accumulation period between May and July, we now find ourselves in the Mark Up period of the cycle.
The Mark Up stage is characterized by a significant move to the upside, with some shakeouts along the way. And if this hypothesis is correct, there will be a Distribution phase afterward, where Bitcoin loses momentum and is outperformed by altcoins.
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