This chart builds on previous ideas I’ve shared regarding the BTC price action since October, 2021. In a previous publication, I stated that we likely had observed a shakeout (SO)/sign of weakness (SOW) in potential Phase D of Wyckoff re-distribution. I presented a scenario that would confirm my idea (solid red line). According to this scenario, we would observe a last point of supply (LPSY) event followed by the price breaking the trading range support to the downside. I presented a scenario that would disconfirm my idea (solid green line). According to this scenario, we had observed a SO/Spring event, which would be followed by a sign of strength (SOS) rally. The price data from over the last 12 days seems to confirm my idea of stepping-stone BTC Wyckoff re-distribution.
Given the observation of a likely LPSY, we may open a short position near the trading range support (approximately $41,000) or at the present price. The take profit targets are at the next support levels; specifically, $37,400 (-5.4%), $33,700 (-14.4%), and $29,900 (-25.2%).
The upper and lower boundaries of the trading ranges are given by the solid black lines and black dotted line. Significant bars, which help define important areas of support and resistance, are given by the blue shading. The blue arrows point to volume spikes.
Wyckoff abbreviations: automatic rally (ARa), automatic reaction (ARe), buying climax (BC), secondary test (ST), upthrust (UT), failed upthrust (FUT), last point of supply (LPSY), shakeout (SO), sign of weakness (SO), Phase A (Ph A), Phase B (Ph B), Phase C (Ph C), Phase D (Ph D), Phase E (Ph E).
The Phoenix Ascending (PA) indicator by @WyckoffMode is given in the bottom panel. The projected path for the red relative strength index (RSI), blue least squared moving average (LMSA), and energy (E), are given by the red, blue, and grey dotted lines.
This is not financial advice. I am not your financial advisor. This is my opinion.
Given the observation of a likely LPSY, we may open a short position near the trading range support (approximately $41,000) or at the present price. The take profit targets are at the next support levels; specifically, $37,400 (-5.4%), $33,700 (-14.4%), and $29,900 (-25.2%).
The upper and lower boundaries of the trading ranges are given by the solid black lines and black dotted line. Significant bars, which help define important areas of support and resistance, are given by the blue shading. The blue arrows point to volume spikes.
Wyckoff abbreviations: automatic rally (ARa), automatic reaction (ARe), buying climax (BC), secondary test (ST), upthrust (UT), failed upthrust (FUT), last point of supply (LPSY), shakeout (SO), sign of weakness (SO), Phase A (Ph A), Phase B (Ph B), Phase C (Ph C), Phase D (Ph D), Phase E (Ph E).
The Phoenix Ascending (PA) indicator by @WyckoffMode is given in the bottom panel. The projected path for the red relative strength index (RSI), blue least squared moving average (LMSA), and energy (E), are given by the red, blue, and grey dotted lines.
This is not financial advice. I am not your financial advisor. This is my opinion.
Target #1: $37,400 (-9.47%)
Target #2: $33,700 (-18.43%)
Target #3: $29,400 (-28.84%)
This trade has worked out extremely well. Targets #1 and #2 have been reached. I expect to close this position when target #3 is reached ($29,400, 28.84% profit).