In my previous post on December 1st, 2021 I wrote about the possibility of another Wyckoff distribution for BTC. History does not repeat but it does certainly rhyme; the exact same Wyckoff pattern from January – May 2021 did not materialize towards the end of 2021, but it does look very similar. In hindsight, the target price zone I identified is spot on as the top. I consider this part luck and not concrete evidence of my forecasting ability.
So, what’s next for BTC? Here’s my latest chart with median lines:
A few things to note:
- The magnitude of the correction from April – May 2021 is almost the same as the current correction (the two yellow lines)
- The bottom of the correction coincides with the median line. Hence, the probability is high that the bottom is in .
- With the macro environment pointing towards higher interest rates in 2022, a move below the median line signals lower BTC prices; the obvious question is where the bottom will be if there is a deterioration in macro conditions. I don’t have an answer on this right now but will be relying on median lines and historical support zones to identify good entry points on any weakness this year.
Similar story with ETH:
The low on January 24th perfectly touches the median line.
Watching if the low on January 24th will be re-tested and if it’ll hold.
Median lines have proven to be powerful tools to help navigate these markets.
That’s it for now; Please do your own research!