The Bearish Bitcoin Chart Bulls Definitely Don’t Want To See

Tony "The Bull" Severino

1 year ago

3 mins read

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Bitcoin price today set a new all-time high, and tomorrow Coinbase goes public putting an even bigger spotlight on the already buzzing cryptocurrency industry.

Things couldn’t possibly look more bullish for Bitcoin and the rest of the market, but the recent price action could resemble one market wizard’s schematic of what “distribution” should look like. Here’s the chart that anyone bullish on Bitcoin might not want to see.

The Various Phases Of A Crypto Market Cycle

All markets are cyclical, and crypto is no different. The entire asset class sans a few outliers are in a massive bull market where new all-time highs are set weekly.

Price discovery in trending, speculative assets are fast and furious and Bitcoin price has been soaring ever since it retested its bear market bottom.

Throughout 2019 and 2020, the leading cryptocurrency by market cap was in full accumulation mode – a phase in which investors were loading up on BTC preparing for the bull market ahead.

Those that did were ultimately right and profitable. Bitcoin price rallied from under $4,000 to $63,000 and is still climbing.

What comes next however isn’t as certain after coming so far. Unfortunately, what’s ahead might not be something bulls are yet ready to see.

Recent price action matches the distribution schematic well | Source: BTCUSD on TradingView.com

Recent Bitcoin Price Action Resembles Wyckoff Distribution Schematic

One crypto analyst has spotted the fact that the recent price action in Bitcoin resembles a distribution schematic created by late master market technician Richard Demille Wyckoff.

Wyckoff is highly regarded alongside the likes of Gann, Dow, Dow, Elliott, Merrill, Morgan, and Livermore. His theories are regularly used throughout finance even today.

Wyckoff theory believes that the market should be viewed as being controlled by one figured dubbed as “the composite man.” This mysterious whale takes the market through four distinct phases: accumulation, mark up, distribution, and mark down.

Markets are said to cycle in such a manner, and Wyckoff was so keen to how this worked, he developed several schematics for each.

Layering such a schematic over the recent Bitcoin price action isn’t a great sign for bulls currently. Making matters much worse, the rally has been a full year strong now with very little correction, technicals are highly overheated, and a rare top signal just appeared for the first time since 2017.

If the analyst is right and distribution is why the rally paused at $60,000, what could come next is a mark down phase that erases some of the mark up over the last year – before it all starts over again.

Featured image from Deposit Photos, 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.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

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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