Did the Bitcoin Spring-Wyckoff Phase just occur?
Bitcoin (BTC) may just be experiencing the popular Wyckoff accumulation pattern that calls the FTX-driven crash a mere bear trap before the market starts a bull run. The price action reflected in the trading range since mid-June resembles the Wyckoff accumulation pattern, which is usually followed by the mark-up phase.
Bitcoin Wyckoff Accumulation Phase
The selling climax (SC) in June 2022 marked the stopping of the prior downtrend. The subsequent automatic rally (AR) that followed and the successful secondary test (ST) completed phase A.
Bitcoin then entered for about 3 months into a tight trading range between $25,000 and $18,000 in phase B.
In the short-term, Bitcoin is in the so-called Spring or shakeout phase, where the BTC price breaks below the low established during phase A. This bear trap usually sets the stage for the next rally.
If the market proves that the Spring phase is currently unfolding, we can expect an upward move next to solidify the swing low in phase C.
In the next phase (phase D), the Bitcoin price should move at least to the top of the previous trading range. This means BTC should retest the $25,000 resistance level. Lastly, phase E starts the mark-up phase, where demand is in full control of the market.
