Scenario 2
1. Wyckoff Accumulation Schematic:
- The schematic on the left illustrates the Wyckoff Accumulation phases, including Preliminary Support (PSY), Selling Climax (SC), Automatic Rally (AR), Secondary Test (ST), and Spring (Shakeout).
- The current price action seems to follow this schematic, suggesting a potential bullish phase if the pattern completes.
2. Current Price Action:
- The price recently experienced a Shakeout (Spring), dropping below the lower boundary of the trading range, but quickly recovering. This indicates a possible final test before a significant uptrend.
- The lower boundary of the trading range is around $54,000, which has been tested multiple times, confirming strong support.
3. Resistance and Breakout Levels:
- Immediate resistance is identified around $69,000. Breaking above this level with significant volume could validate the Wyckoff Accumulation pattern, leading to a potential bullish breakout.
- A successful breakout might target the next resistance around $84,000, with potential further gains if the bullish momentum continues.
4. Potential Bullish Path:
- If the price sustains above the lower boundary and breaks the $69,000 resistance, we could see a rally towards $84,000 and possibly higher.
- The green dotted line indicates a projected path for a bullish breakout, aligning with the Wyckoff pattern’s Last Point of Support (LPS) and Sign of Strength (SOS).
#Conclusion#:
Traders should watch for confirmations of the Wyckoff Accumulation pattern. A breakout above $69,000 with increased volume could signal a strong bullish trend. Conversely, a failure to hold the $54,000 support might necessitate re-evaluating the bullish scenario. As always, combining technical analysis with other market insights and a robust risk management strategy is essential.
