Bitcoin News

VIDEO: Bitcoin, Wyckoff Theory, And The Composite Man

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In this episode of NewsBTC’s daily technical analysis videos, we compare Bitcoin price action with Wyckoff accumulation schematics, price cycles and more.

Take a look at the video below:

VIDEO: Bitcoin Price Analysis (BTCUSD): September 8, 2022

This video provides a detailed look at Bitcoin market cycles using Wyckoff theory and other cyclical tools.

Is The Composite Man Behind Bitcoin Mark Down?

Wyckoff theory is based on the idea that retail traders are regularly outsmarted by large operators he referred to as the Composite Man. It is also known for its phases of accumulation and distribution, and the mark up and mark down phases that occur in between as the market goes through bullish and bearish cycles.

The recent price action continues to follow what looks a lot like Wyckoff accumulation. After breaching preliminary support, price reached the selling climax at $17,500. What we potentially just saw this week was a secondary test in phase B. that’s the good news. The bad news is that there could be a long time until we see high prices again.

A comparison with an Wyckoff accumulation schematic | Source: BTCUSD on TradingView.com

How A Spring Could Put An End To Crypto Winter

That was also just one of Wyckoff’s accumulation schematics. Another schematic example includes a final shakeout called a spring. Based on the schematic, the spring would occur some time around December and a breakout would occur in April. 

This is especially notable, because that is exactly when Bitcoin bottomed in 2018 and when the accumulation phases ended in 2019. Even more interesting, is the fact that December has frequently been a timing factor for tops and bottoms in Bitcoin all throughout its history.

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Will we get a spring or not? | Source: BTCUSD on TradingView.com

Related Reading: WATCH: Ethereum Gains Momentum Ahead Of The Merge | ETHUSD September 6, 2022

Wyckoff, Gann, And Other Technical Analysis Greats

Even the 2017 peak was in December, which we are currently retesting for the umpteenth time. The month of December mysteriously was one of WD Gann’s favorite months to look for tops and bottoms, and it was due to how the Sun conjuncts Mercury while in Sagittarius.

Gann, like Wykoff was one of the all-time greats. Both are known as two of the five titans of finance, which include with Charles Merrill from Merrill Lynch, Charles Dow from Dow Theory and the Dow Jones…

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