Stepping-Stone Re-Distribution Continues for Bitcoin

Since Oct 21, 2021, Bitcoin (BTC) has exhibited a stepping-stone pattern of re-distribution. I have clearly documented these events in a series of publications as the price action unfolded. In this stepping-stone pattern, the price trades within a well-defined trading range for a time until the price commits below the lower boundary of the trading range in a shakeout (SO) and/or sign of weakness (SOW) event. Next, demand comes in to stop the downward price action then the price trades within a new trading range with well-defined boundaries. In stepping-stone re-distribution, it’s almost as if the trading ranges are kind of stacked upon one another.

With the recent FTX/Alameda black swan event, we have observed a SO/SOW event. In the SO/SOW, the BTC price dropped by greater than 26%. Demand clearly stepped in to stop the price from decreasing further. Most likely we have entered a new trading range although we need to wait for confirmation. In addition, we don’t know at the moment if this new trading range is accumulation or distribution.

Note: The orange circles highlight climatic level volume.

Wyckoff abbreviations: automatic rally (ARa), selling climax (SC), secondary test (ST), upthrust (UT), upthrust after distribution (UDAT), preliminary supply (PS), failed upthrust (FUT), shakeout (SO), sign of weakness (SOW), upthrust (UT), Phase A (Ph A), Phase B (Ph B), Phase C (Ph C), Phase D (Ph D).

This is not financial advice. I am not your financial advisor. This is my opinion.

Komen:

Although Eight Chains 1.002 flashed a long signal on Nov 12 and on Nov 15, I will not be opening a BTC position until I get a stronger/more clear signal.

Komen:

Zoomed out image of stepping-stone re-distribution from Oct 21, 2021 to the present.