Will BTC PUMP like Wyckoff accumulation?

Wyckoff pricing pattern

BTC plunged to $ 28,800 and then rebounded. There is a lot of talk at this point about the Wyckoff pricing pattern. In addition to this pricing model, several assumptions are made about the current BTC price.

The Wyckoff pricing model was developed by Richard Demille Wyckoff, a pioneer of a technical approach to stock market research in the early 20th century. To date, the Wyckoff method can be applied to any over-the-counter market in which large institutional traders operate, including commodities, bonds and currencies.

The Wyckoff method is also based on the cyclical price theory. In this pattern there are phases where the price goes down, enters the oversold zone, then grows into the overbought zone and goes down, starting a new cycle.

Many people think that the current BTC price is like the oversold time of the Wyckoff model, this is also the time of market accumulation.

The first accumulation model said that at some point the price fell into the spring range, the price range was much lower than investors thought. Before that, the price went low and retested the low support many times. After that, the price suddenly fell into the spring area, as a result of which many investors have not been able to hold the market, they will sell, reduce their losses and leave.

Similarly, BTC has been falling rapidly from $ 60,000 to $ 30,000 to $ 42,000 recently. Then the price suddenly fell below the $ 28,500 support.

Many people believe this stock chart was created by whales to test investor psychology. The price of the spring range many people panic and sell. After that the price will gradually recover and there will be 2 LPS (Last Point of Support) sessions at the time when the last people who are selling and want to stop losses are usually selling at this level. If weak investors have sold LPS after spring, then the market price can rise sharply.

Compared to the BTC price in the H8 bracket, a lot of people find it similar to Wyckoff above. And the moment the BTC price drops to $ 28,500, corresponds to the spring equinox of this model.

This Wyckoff pattern is believed to be the whale’s way of inflicting extreme pain on investors, causing them to sell and exit the market.

While the market was selling in a panic, long-term investors and large financial firms took the opportunity to buy BTC at low prices. The CEO of Bitwise, a company that provides crypto investment services similar to Grayscale, said that many of their key customers have bought more BTC through their mutual funds.

Another person who owns the F2Pool mining association also shared that they bought an additional 1,100 BTC. The recently noticed whale wallet with a wallet address (1P5ZED … WKDfHQ) added more than 1000 BTC to the wallet.

Some other highlights:

• After El Salvador officially recognized Bitcoin as a legal currency, El Salvador quickly deployed many ATMs over Bitcoin and implemented a system to facilitate BTC payments and transactions.

• The company PayPal, Visa together with Coinbase, Kraken, Anchorage, Nexus Mutual and several other companies invested jointly in the opening of a blockchain capital company on the basis of the “Strategic Partner Program”. Blockchain Capital carries out the planning for the resulting partnerships in order to create the basis for value creation for companies and startups. Through blockchain capital, companies that participate in capital contributions create and enjoy profits together, they unite more closely to increase competition with competitors.

• Investor Jim Crammer has sold all of his bitcoins. The reason for the sale was because China banned miners, which caused the BTC mining speed to decrease, but the price of BTC decreased. This is the opposite of gold, when the rate of gold mining goes down, the price of gold goes up. So he found this unreasonable and sold his BTC. The second reason he cited was concerns that Brian Nelson, who was nominated under the U.S. Secretary of State for Terrorism and Financial Information, could, if officially in office, introduce tough laws that annoy crypto investors.

Through this we see that people who really don’t have much knowledge about BTC or crypto, even like Jim Crammer, don’t understand the mechanism of BTC. As Bitcoin’s mining speed decreases, BTC’s mining difficulty also adjusts every 8 days to ensure the speed at which BTC is mined. Therefore, when investing in any area, each of us must learn, have clear knowledge and strategies to make the decisions that are most appropriate for us.