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So, what is this? Glad you asked. This is the Wyckoff Method. In Layman’s terms:
The Wyckoff Method is a method of determining when a market is manipulated by big guys — “Composite man” — into their advantage.
You read right, manipulated. The method was developed for stocks, but it can be applied to any market, including our new crypto market.
The Wyckoff method describes two chart patterns of manipulation, which can predict long-term movement: distribution and accumulation.
In the distribution pattern, big guys (“Whales”, “the Composite man”, etc.) sell their shares and manipulate the market into a downtrend.
In the accumulation phase, big guys buy as many cheap shares as possible and then manipulate the market into an uptrend.
In the crypto arena, Bitcoin is the market mover. Where Bitcoin goes, the market eventually flows. Thus, by looking at the Bitcoin 1D chart, we see almost perfectly a Wyckoff distribution chart pattern. More about the Wyckoff method here.
If we look at the Bitcoin chart and the Wyckoff distribution schematic, they sure look pretty much the same.
As soon as I saw this, I sold everything with the intent to buy back at 30K or less. Of course, I may be wrong, nothing is certain. In this case, I will buy back in at 43k, after the 42k resistance is broken.
Now, I won’t buy only Bitcoin. As I said, everything goes down sooner or later following Bitcoin, as we saw in May and along the years.
The last time I saw a bearish indicator or pattern and didn’t follow the plan, I lost half my money (all my profit). I won’t make that mistake again.
If I am wrong, then we are currently already in the Wyckoff accumulation phase and we will go to the moon (100k) sooner. I think we will go to 30K one last time and then go up.
The takeaway is to be prepared for the crypto market going down another 10–20%. What you do in this scenario is up to you. I am no financial adviser and cannot recommend you do anything.
However, I am presenting what I am doing in this case. I sold everything and waiting to buy the dip (30k) or buying again when we have a stronger uptrend (42k+).