BTC Wyckoff Accumulation: we can expect another dump
The Wyckoff Accumulation Schematic is playing out as envisioned. We already experienced phase A and phase B. Since the price went below the support lines at 41k and 40k USD, we can confirm that the new low at 39 k USD was the spring.
Phase C is characterized by the price going through a decisive test of the remaining supply, allowing the “smart money” operators to ascertain whether the BTC price is ready to be marked up. A spring is a price move below the support level established in Phases A and B that quickly reverses and moves back up.
At the beginning this phase might seem like a bear trap because the drop below support appears to signal a downtrend. However, this marks the beginning of a new uptrend. In a Wyckoff Accumulation Schematic, a successful test of supply represented by a spring provides a high-probability trading opportunity. A low-volume spring indicates that the asset is likely to be ready to move up. On this occasion, we can see a high-volume spring, meaning another spring event is likely to happen.
Bollinger bands suggest that BTC is bearish conditions. BTC is going through a contraction period. The upper band indicates a price uptrend to 42K and the 20 Day SMA and the 20 EMA indicate a resistance level at around 41,600. Currently, the BTC price stands at 41K, close to the lower range of the bands (40,900). In addition, RSI is at 40. Lowe RSI, indicates that BTC is being oversold and is a good opportunity to buy.
Based on Wyckoff Analysis and Bollinger Bands my prediction for price action in the next weeks is the following:
From now (Jan 10th) till the end of January, the Wyckoff accumulation phase C would still be in play. In the meantime, the price is going to be oscillating between 42–40k USD according to Bollinger Bands. However, it can still go lower than 40k according to Wyckoff theory, I predict around 38k. Right now is a good buying opportunity!
