BTC - Wyckoff Accumulation Schematic about to enter Phase E

28 Mei 2023

The time is almost upon us. I theorize we about about to exit our 1 year accumulation cycle for an explosive break to the upside. May/June of 2022 was the first major capitulation and here we are after spending a year in our accumulation schematic ready to enter phase E.

The Wyckoff accumulation schematic gives us a good sense of where in the accumulation cycle we are.

Phase A is the capitulation followed by first major test of resistance.
Phase B is where price establishes a range of structure.
Phase C is the manipulation phase where price falls lower than previous support. This gives large investors the liquidity they need for the bounce in phase D. It is also important to note that phase C is usually the smallest phase as price does not stick to the lows for long.
Phase D is the growth phase and breakout/retest of prior resistance levels to flip into new support.
Phase E is the expansion phase.

With a debt ceiling deal being reached a couple hours ago, a lot of the FUD has disappeared. This will create hopiem for the markets which could begin the rally starting next week. Also, with June 1 being so important for Hong Kong and China entering the crypto space we could start to see a lot of liquidity reenter this space giving us the fuel for a phase E breakout.

Since it is labor day weekend Tuesday will be a very important day for the stock market and crypto. We will see how investors really think about this deal and determine if the volume is able to start breaking us above those key resistance levels.