Bitcoin Enters Wycoff Phase E After Breaking Support at $9,120.0
Happy Thursday. Today the Technical Analysis will be confined to the 15 Minute Intraday chart.
With that, let’s get to the TA…
Looking at the 15M Intraday Chart, the formation printed a Major Sign of Weakness (MSOW) on a breakdown with conviction through the lower line of support at the $9,120.00 price handle to $9,020.00, before reversing direction and printing a lower high at $9,140.00.
Since the PA has reversed direction after printing the Major Sign of Weakness (MSOW), it has failed to break out with conviction above the lower line of support at the $9,120.00 price handle, tapping out at $9,140.00. This PA signals the formation has entered Phase E of a Wyckoff Distribution and major move down (a Selling Climax) is imminent.
The cause from consolidation suggests a target price of $8,660.00, should the cause fully exhaust itself in this distribution. Typically, a Selling Climax will exhaust itself in 2 – 3 legs during the Selling Climax (SC) over the final phase of distribution, providing additional Last Points of Supply (LPSY) during the breakdown.
The key price to watch for on the 15M Chart is $9,020.00. A price of $9,000.00 would signal a sell and a price of $8,980.00 would confirm a critical breakdown is in progress, which would suggest a breakdown to the $8,660.00 price handle (or lower) is in play.
Summary/My Trade Plan
Given the formation is has just confirmed entry into Phase E, a Selling Climax to $8,660.00 is imminent. The plan is to Layer in Short Positions above $9,100.00 (Ideally $9,120.00) on the retest of the Last Point of Supply (LPSY) before the formation moves wholesale into the anticipated Selling Climax (SC). The current Target Price would be $8,660.00. Once shorts have been layered in, sells should be layered in starting at $8,680.00 through $8,660.00. Stoplosses should be placed in the $9,230.00 region.
Always remember this is not trading advice.
Outside of that, Happy Trading.
With that, let’s get to the TA…
Looking at the 15M Intraday Chart, the formation printed a Major Sign of Weakness (MSOW) on a breakdown with conviction through the lower line of support at the $9,120.00 price handle to $9,020.00, before reversing direction and printing a lower high at $9,140.00.
Since the PA has reversed direction after printing the Major Sign of Weakness (MSOW), it has failed to break out with conviction above the lower line of support at the $9,120.00 price handle, tapping out at $9,140.00. This PA signals the formation has entered Phase E of a Wyckoff Distribution and major move down (a Selling Climax) is imminent.
The cause from consolidation suggests a target price of $8,660.00, should the cause fully exhaust itself in this distribution. Typically, a Selling Climax will exhaust itself in 2 – 3 legs during the Selling Climax (SC) over the final phase of distribution, providing additional Last Points of Supply (LPSY) during the breakdown.
The key price to watch for on the 15M Chart is $9,020.00. A price of $9,000.00 would signal a sell and a price of $8,980.00 would confirm a critical breakdown is in progress, which would suggest a breakdown to the $8,660.00 price handle (or lower) is in play.
Summary/My Trade Plan
Given the formation is has just confirmed entry into Phase E, a Selling Climax to $8,660.00 is imminent. The plan is to Layer in Short Positions above $9,100.00 (Ideally $9,120.00) on the retest of the Last Point of Supply (LPSY) before the formation moves wholesale into the anticipated Selling Climax (SC). The current Target Price would be $8,660.00. Once shorts have been layered in, sells should be layered in starting at $8,680.00 through $8,660.00. Stoplosses should be placed in the $9,230.00 region.
Always remember this is not trading advice.
Outside of that, Happy Trading.