Bitcoin price just plunged once again from over $11,000 and is currently holding around $10,500. The support level could just be a quick pitstop before the selloff continues, according to the recent price action resembling the “market maker profile sell model.”
If the cryptocurrency continues to follow the projected path this particular model predicts, Bitcoin could fall to new local lows, or worse.
Bitcoin Market Maker Sell Model: Wyckoff Distribution By Another Name
When an asset falls to attractive prices, it is accumulated by smart money investors who take a positon ahead of a large price increase. This transition from accumulation phase to mark up often results in a strong climb to a higher level, where a pause takes place before another rise.
This is exactly what happened when Bitcoin touches its current bear market bottom at $3,200 and then rocketed to $14,000 in a matter of months.
Related Reading | Bitcoin “Distribution” Could Lead To Another Arm And A Leg Down
The same sort of theory is true in inverse for Bitcoin or any other assets. According to Wyckoff distribution models – which some analysts claim matches the cryptocurrency’s recent top price action – after distribution, comes mark down, then the cycle repeats.
That type of sell model very closely matches recent Bitcoin trading action, however, another more ominous looking sell model has also surfaced that suggests new lows could be set.
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