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How does the Wyckoff cycle affect the price movement of cryptocurrencies?

avatarmate mesbahDec 25, 2021 · 3 years ago1 answers

Can you explain how the Wyckoff cycle influences the price movement of cryptocurrencies? What are the key factors and indicators to consider?

How does the Wyckoff cycle affect the price movement of cryptocurrencies?

1 answers

  • avatarDec 25, 2021 · 3 years ago
    The Wyckoff cycle is a widely recognized pattern in the cryptocurrency market. It can be observed across various timeframes and is driven by the actions of smart money investors. During the accumulation phase, prices are relatively stable as smart money accumulates positions. This is followed by the markup phase, where prices experience a significant uptrend as demand increases. The distribution phase occurs when smart money investors start selling their positions, leading to a consolidation or even a downtrend. Finally, the markdown phase is characterized by a sharp price decline as panic selling takes over. Traders who understand and can identify these phases can potentially profit from the price movements in cryptocurrencies. At BYDFi, we closely monitor the Wyckoff cycle and its impact on the cryptocurrency market to provide our users with valuable insights and trading strategies.