WATCH: Bitcoin, Wyckoff Theory, And The Composite Man | BTCUSD September 8, 2022

Tony "The Bull" Severino

Last Updated: June 11, 2024 1:42 pm

4 mins read

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In this episode of NewsBTC’s daily technical analysis videos, we compare Bitcoin price action with Wyckoff accumulation schematics, price cycles and more.

Take a look at the video below:

VIDEO: Bitcoin Price Analysis (BTCUSD): September 8, 2022

This video provides a detailed look at Bitcoin market cycles using Wyckoff theory and other cyclical tools.

Is The Composite Man Behind Bitcoin Mark Down?

Wyckoff theory is based on the idea that retail traders are regularly outsmarted by large operators he referred to as the Composite Man. It is also known for its phases of accumulation and distribution, and the mark up and mark down phases that occur in between as the market goes through bullish and bearish cycles.

The recent price action continues to follow what looks a lot like Wyckoff accumulation. After breaching preliminary support, price reached the selling climax at $17,500. What we potentially just saw this week was a secondary test in phase B. that’s the good news. The bad news is that there could be a long time until we see high prices again.

A comparison with an Wyckoff accumulation schematic | Source: BTCUSD on TradingView.com

How A Spring Could Put An End To Crypto Winter

That was also just one of Wyckoff’s accumulation schematics. Another schematic example includes a final shakeout called a spring. Based on the schematic, the spring would occur some time around December and a breakout would occur in April.

This is especially notable, because that is exactly when Bitcoin bottomed in 2018 and when the accumulation phases ended in 2019. Even more interesting, is the fact that December has frequently been a timing factor for tops and bottoms in Bitcoin all throughout its history.

Will we get a spring or not? | Source: BTCUSD on TradingView.com

Wyckoff, Gann, And Other Technical Analysis Greats

Even the 2017 peak was in December, which we are currently retesting for the umpteenth time. The month of December mysteriously was one of WD Gann’s favorite months to look for tops and bottoms, and it was due to how the Sun conjuncts Mercury while in Sagittarius.

Gann, like Wykoff was one of the all-time greats. Both are known as two of the five titans of finance, which include with Charles Merrill from Merrill Lynch, Charles Dow from Dow Theory and the Dow Jones Industrial Average, and Ralph Nelson Elliott who created Elliott Wave Theory.

Gann’s methodology was the most mystical of them all. Check out how flawlessly one of his tools, the Gann fan, called the breakout from the bear market and an incredible 500% advance in the example below.

Gann's tools are based on geometry, angles, and time | Source: BTCUSD on TradingView.com

What To Make Of The Current BTCUSD Market Cycle

Markets are indeed cyclical, as Wyckoff and the other greats believed. The cycle begins with accumulation after an asset becomes oversold. Demand begins to outweigh supply and mark up begins. Then the composite man begins to slowly distribute on retail, before mark down begins and supply outweighs demand.

It sounds simple, but this is just how it works. Bases on a visual inspection alone and how history has rhymed in the past, we could potentially be in or nearing accumulation and mark up will return soon enough.

Is it almost time for another bull run? | Source: BTCUSD on TradingView.com

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Featured image from iStockPhoto, Charts from TradingView.com

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

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Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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