BITCOIN - Wyckoff Schematic 2

BTC is printing Wyckoff Schematic 2 on this BTC Christmas Tree.

Circled area will likely repeat to print another drifting pre-capitulation pattern.

I highlighted this pattern on May 10 on the previous top that also printed in the 2018 bear market.

SOW in D will be coming up down the road to complete this very long wyckoff distribution.

Btw - do notice the volume decline for a whole year!

Merry Christmas 🎄

Comment:

For anyone interested in Wyckoff, notice the differing strength of trend of PSY into BC, then the much weaker (ABC) rally up to UT.

It was difficult (for me) to see the final (C) wave up to UT in September because in previous bear markets BTC has printed a zig-zag down and never a double top, but now price has dipped well below resistances this is an obvious collapsing distributive topping structure and BTC will easily see 20K again.

Comment:

Daily candle tags the upper bollinger band and retraces - may find support on trendline from the top.

Also here is a metric oscillators I use - The Wookalich is a variant of Willy Woo's NVT. Currently the ratio line is crossing the signal line and this combined with other TA is a good signal the bounce will continue. In the blue circled area shows how such a crossing highlighted the bounce. I dont expect the separation to be quite as pronounced as this will likely be a weak bounce. Very little chance of BTC touching that lower trend channel imo.

Also notice the fib rings - if you can find the harmony spot its incredible how reversal points happen upon crossing - currently set to 1.236 / 1.618.

Comment:

A weak bounce may well give alts plenty of time to pump and manyincluding ADA OMG and LINK that I have made threads on are oversold and look ripe for a harder bounce.

Comment:

And of course there will be alts that have rallied hard and may continue to rally hard, but they come with significant downside risk and not trades that I will be taking. ADA OMG and LINK are all high RR for a swing trade.

Comment:

Hidden divergence on 4H RSI may be suggesting BTC is going to drift sideways and perhaps some wibble-wobble on this bounce, maybe find support on 4H50MA. And thats just fine for alts on a bounce. BTC looks set for 54-57K at least.

Comment:

BTC in sideways drift after slumping back down. 1H hidden divergence - will probably drift back up soon which will be good for alts.

Comment:

+1hr long wicked hammer* also bullish short term.

Comment:

Another leg down and BTC has hit and wicked through the 1:0.618 ABC which is also where the 200DMA is.

It looks like this will be a weak bounce for BTC and perhaps one to drift sideways. This big sell off is a tell as to what is coming down the road, but as long as BTC reverses around this 1:0.618 I still like my alt swing trades. If it doesn't I sell all.