#BONK #WyckoffSupplyDemandQuantityPrice

The most difficult of Wyckoff's three principles is the principle of cause and effect. Regarding this point, I touched on the main behavior of bonk at that time in the previous bonk reading, and I thought it was a very god-like operation. At that time, the market fell sharply and the market was bad. Before the market came out, I determined that the main force of bonk was taking advantage of the market trend to do a panic selling behavior, and then it would definitely be pulled back later.

Speaking of which, the specific difficult points of cause and effect are:

1. The time relationship between accumulation and distribution

Accumulation takes time, and distribution also takes time. If the time relationship cannot be captured, you cannot identify the accumulation and distribution relationship at the level of the big trend. The result is that you can draw a standard Wyckoff accumulation and distribution behavior chart for any level of band oscillation.

This is why many people have been carving Wyckoff's accumulation and distribution charts before, saying that BTC is a standard Wyckoff distribution, but now BTC is about to be 70,000 again. After the standard distribution, the price of BTC should be 40,000 now. This is the inequality between the time of accumulation and distribution, and the phenomenon of re-accumulation, which is the rotation of accumulation and distribution.

2. The rotation relationship between accumulation and distribution

After accumulation, the purpose is to distribute. After the distribution is completed, accumulation will be carried out. When the accumulation of small levels turns into large levels, it will bring about a pull-up, and vice versa. Then the accumulation and distribution in the big and small cycles are always rotating, because the market is unpredictable and changes in real time, and the supply and demand change very quickly.

Still taking the case of BTC, so many people are distributing, and BTC is indeed distributing, so why is it now pulled up to 68,000, and it is about to reach the previous high, so is BTC still distributing now? Can it reach a new high? These are all changes brought about by the rotation of accumulation and distribution.

I am still thinking about the principle of cause and effect. The above is just my very subjective experience, for reference only, and I am only a student~