The price of Bitcoin has risen to more than 55 55,000, clearing any downtrend resistance and potentially indicating that the bull race has started again. The move may have come as a surprise, but the blueprint for what happened was created almost 90 years ago.
Here is a history lesson on Richard Wycoff, Wycoff theory, and how the market wizard, born in the 1800s, was able to predict the price action of a digital asset that did not make its debut until the 2000s.
All you need to know about Ricard Wycoff and his theory
According to Wikipedia, Richard Wycoff was known as an American stock market investor. He also founded and worked as editor of Wall Street Magazine in the early 10,000s.
Waqif himself was particularly fascinated by the underlying mechanics that created or changed trends. He spent most of his later career studying the market and other investors during that time. Those he has studied are Jesse Livermore and JP Morgan.
Related Reading | Etherium potentially trades inside Livermore accumulation cylinder pattern
Wycoff believed in the concept of a “composite operator” or single mind that controls the ebb and flow of the market. Wycof spent his last days in the 1930s examining the behavior of this “composite operator” and came up with some specific plans that would tell traders if the market was in four distinct stages: deposit, mark-up, distribution and mark-down.
The stages of re-deposit and redistribution before the cycle is repeated are also common as mid-points. But how does all this apply to Bitcoin?
– Tony “The Bull” Spilotro (@tonispilotrobTC) April 23, 2021
Bitcoin price breakout can be predicted with 90 year old planned
The price action of Bitcoin was in clear distribution when the top cryptocurrency by market cap reached 65 65,000 in April 2021, as the tweet above shows.
Related Reading | Bulls regains control over Bitcoin Trend Strength: What to Expect
After a massive sinking of crypto in May, it is up to the “composite operator” to decide whether the asset will be redistributed, or re-deposited. The chart below makes it clear which of the two is happening.
Wyckoff re-accummulation should lead to extensive mark up and new all-time highs | Source: BTCUSD on TradingView.com
What should come next, is a mark up phase. And it will happen again when the distribution ends and the final end of the current bull cycle will happen once and for all.
At that point, below would suggest strategies designed more than 90 years ago to see signs of redistribution or accumulation. But this is only if you believe in the power of waqf theory. Do?
Follow Ony tonispilotrobTC on Twitter Or through Tonitrade BTC Telegram. Content should not be considered as educational and investment advice.
Featured image from iStockPhoto, Charts from TradingView.com