HI
Bitcoin entered a lateral zone about a month ago
This shows the lack of decision and hesitation of the market. There is a main question. What will be the final move from this area? In other words, we are facing accumulation or distribution?
Let's look at some signs
1- Divergence in many indicators: As you can see, many indicators such as RSI, MACD, and OBV have a negative price divergence. This is a sign of a decline in strength.
Renko's analysis reveals several other issues.
2- Decreasing the strength of ascending waves: Weiss green peaks have divergence. After entering the lateral movement zone, despite even the price increase, the waves of the upward Weiss volume are disappearing.
3-The law of effort and result: One of the main rules of Wyckoff is the law of effort and result. According to this law, the effort must be equal to the result, otherwise, there is a problem. In the last ascending wave compared to the previous waves, time and price increased but the volume wave decreased. This means a high result against a low effort that does not match.
The lateral movement may continue for some time, and the recent downturn maybe not indicate an original upthrust (although it could be a potential upthrust), but it should be noted that we are facing a potential distribution area.
Bitcoin entered a lateral zone about a month ago
This shows the lack of decision and hesitation of the market. There is a main question. What will be the final move from this area? In other words, we are facing accumulation or distribution?
Let's look at some signs
1- Divergence in many indicators: As you can see, many indicators such as RSI, MACD, and OBV have a negative price divergence. This is a sign of a decline in strength.
Renko's analysis reveals several other issues.
3-The law of effort and result: One of the main rules of Wyckoff is the law of effort and result. According to this law, the effort must be equal to the result, otherwise, there is a problem. In the last ascending wave compared to the previous waves, time and price increased but the volume wave decreased. This means a high result against a low effort that does not match.
The lateral movement may continue for some time, and the recent downturn maybe not indicate an original upthrust (although it could be a potential upthrust), but it should be noted that we are facing a potential distribution area.
