Auction Market Theory 101: Where Bitcoin currently stands
With AMT (Auction Market Theory) we combine auction nodes that are made up of areas of high volume, sandwiched between areas of low volume.
In our current environment, there are some bullish signs. However, it is important to note that there are also signs if this entire structure being distributive. As shown on the chart, there Wyckoff structures that seem to be distributive in nature.
We are currently at a pretty major inflection point about which way price will go.
Signs of possible re-accumulation:
-Price has shifted back into the value area, and has accepted into the first auction area in a much larger auction volume area.
-These areas represent nodes where price is balanced. Price typically seeks these areas because there was agreement between traders on price here previously.
In order for this move to represent potential reaccumulation, my opinion is that we must wait for the next auction area to be breached. Depth Of Market (DOM) orders are a clear indication for where these areas are being accepted by traders.
The current area to watch is 42500 and 41300. A move breaching the 42500 area is very likely a sign that price is being accepted inside the value area, and moves into 44000+ are likely.
Signs of possible distribution:
-As I had mentioned before, there are characteristics of this entire area being distributive in nature. However, re-accumulation can be had from here, which would chalk the entire push below the value area low to be a spring-like event.
-Anything below 41300 in my opinion would represent a failure of market participants to accept price, and there is a likelihood of a much stronger and deeper move down for Bitcoin.
I would be looking at targets in the range of 35,000 to come first if we fail below 41300. While proof of re-accumulation is looking at a target of 53,000.
As we can see in the order flow (Depth of Market), the 42500 and 41300 levels match up perfectly with out auction zones here: imgur.com/a/wjsCKtJ
In our current environment, there are some bullish signs. However, it is important to note that there are also signs if this entire structure being distributive. As shown on the chart, there Wyckoff structures that seem to be distributive in nature.
We are currently at a pretty major inflection point about which way price will go.
Signs of possible re-accumulation:
-Price has shifted back into the value area, and has accepted into the first auction area in a much larger auction volume area.
-These areas represent nodes where price is balanced. Price typically seeks these areas because there was agreement between traders on price here previously.
In order for this move to represent potential reaccumulation, my opinion is that we must wait for the next auction area to be breached. Depth Of Market (DOM) orders are a clear indication for where these areas are being accepted by traders.
The current area to watch is 42500 and 41300. A move breaching the 42500 area is very likely a sign that price is being accepted inside the value area, and moves into 44000+ are likely.
Signs of possible distribution:
-As I had mentioned before, there are characteristics of this entire area being distributive in nature. However, re-accumulation can be had from here, which would chalk the entire push below the value area low to be a spring-like event.
-Anything below 41300 in my opinion would represent a failure of market participants to accept price, and there is a likelihood of a much stronger and deeper move down for Bitcoin.
I would be looking at targets in the range of 35,000 to come first if we fail below 41300. While proof of re-accumulation is looking at a target of 53,000.
As we can see in the order flow (Depth of Market), the 42500 and 41300 levels match up perfectly with out auction zones here: imgur.com/a/wjsCKtJ
Comment:
While I am currently neutral until I see where price plays out, I am leaning more towards the bearish side for a couple of reasons:
