Bitcoin is currently experiencing a sharp decline, with the price of digital gold falling below the $65,000 threshold. However, there is a scheme that can explain BTC’s current movements and potentially give us hope.
Bitcoin is currently experiencing a sharp decline, with the price of digital gold falling below the $65,000 threshold. However, there is a scheme that can explain BTC’s current movements and potentially give us hope.
A well-known technical analysis pattern for interpreting asset market behavior, especially during periods of accumulation and consolidation, is the Wyckoff reaccumulation scheme.
Under this scheme, Bitcoin’s current state could be part of a broader reaccumulation phase in which retail investors and strong hands are gradually accumulating BTC against each other.
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Initial Support Level (PSY) – After a downtrend, this is the initial support level, where substantial buying begins to occur, slowing the decline.
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Selling Climax (SC): The price point at which strong hands absorb strong selling pressure, causing a sharp price drop and subsequent rebound.
Yuri Molchan-
Automatic Rally (AR): When selling pressure decreases after a selling climax, prices automatically rise.
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Secondary Test (ST): To evaluate the supply and demand levels, the price returns to the sales climax zone. Falling volumes may be declining, indicating decreasing selling pressure.
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Spring: The price may briefly fall below the previous low (support) during this possible restructuring phase, which could lead to stop losses and panic selling before it quickly rises again. The purpose of this move is to catch weak and bearish hands.
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Signal of Strength (SOS): A new uptrend is signaled when price breaks through resistance with significant volume. The last measure of support before an asset makes a substantial upward move is called Last Point of Support or LPS.
Yuri MolchanThe three-day chart indicates that this reaccumulation scheme appears to be what Bitcoin is doing. Right now, Bitcoin appears to be testing support levels, which could mean that a big bullish move is imminent.
The scheme suggests that after this consolidation phase, Bitcoin could experience strong bullish momentum, which could push prices towards previous highs and beyond. While this pattern does not guarantee future performance, it provides a structured way to interpret market behavior and identify potential opportunities.
