Bitcoin Broke Out as We forecasted, What's Next?



On 11 Feb 19, we applied the Wyckoff Method and forecast that bitcoin (BTC) has entered into an accumulation zone (bottomed) and is expecting a breakout. We got the breakout today with BTC reaching a high of $5,106. 

With the strong breakout, we expect BTC to range or pullback amid profit taking. It will also be an opportunity BTC to test its support (and the rest who has not entered to hop on). 

BTC is currently trading in Mark Up phase, we will expect BTC to retest its $5,000 high and if successfully broken, next target would be $5,800.

Learning to recognise demand/supply balance and identify different phases of price cycle allow us to capture opportunity and reduce risk in our market operations.

Continue following our blog to learn more about Wyckoff Method and identifying various phases of price cycle.





Popular posts from this blog

Eventful Week: FOMC Decision and Earnings Reports Headline Upcoming Week

Image
  Eventful Week: FOMC Decision and Earnings Reports Headline Upcoming Week The week ahead is shaping up to be a busy one for the markets, with the Federal Open Market Committee (FOMC) meeting and earnings season taking center stage. The FOMC is widely expected to raise interest rates by 25 basis points on Wednesday, in an effort to combat inflation. This will be the first rate hike after June's pause, and investors will be closely watching the accompanying statement for any clues about the pace of future rate hikes. Earnings season is also in full swing, with more than 100 companies in the S&P 500 scheduled to report results this week. Investors will be looking for signs of how companies are weathering the current economic and geopolitical challenges. In the meantime, China markets appear to be stabilizing, with the yuan holding steady against the dollar below 7.25 and KweiChow Moutai (600519), a vital component of the China A50 index, which displays strength by breaking out
Read more

Wyckoff's Law of Effort

Image
Law of Effort Wyckoff's Law of Effort states that on any single trading day (or week depending on time frame), huge volume (effort) push by participants should see huge price movement, resulting in a wide spread (long body). This is a basic principle of effort and result. However, as per Singtel's case study, we saw huge selling volume on 11 May, yet the price action only shows a narrow spread (small body). This divergence of effort and result in Wyckoff's Law of Effort principles, indicates possible exhaustion in selling or hidden buying. Thus, with a lack of weakness, Singtel should continue trading range bound for the coming days or weeks till further strength or weakness is observed. Swing Traders who trades range can consider positions at 3.70-3.72, with exit target 3.76-3.78.
Read more