Bitcoin price suddenly rose, supported by a wave of positive news.
If the recent introduction of a Bitcoin ETF by BlackRock and the emergence of EDX — a new non-custodial cryptocurrency exchange backed by Charles Schwab, Citadel, Fidelity, and others — seem to be too coincidental with bullish price action, read on to learn more about the methodology. Technical analysis that has seen this come from 90 years ago.
Bitcoin news cycle turns positive, followed by price
Bitcoin is bullish headlines, after nearly two years of negative sentiment, news and price action. As the news cycle seems to be changing, the price is once again moving to the upside.
While the change in direction and narrative seems to take many by surprise, a more than 90-year-old technical analysis theory called the Wyckoff Method has seen this coming from decades.
What is the Wyckoff method? Explaining a 90-year-old theory
The Wyckoff method was founded by Richard Wyckoff in the 1930s, at a time when other legends such as Ralph Nelson Elliott and Charles J. Dow formulated the Elliott Wave Principle and Dow Theory.
Each of the technical analysis giants came up with their own observations of how the market should behave. Wyckoff’s method believes that retail investors and traders should seek to act as if the market were controlled by the “composite man”.
Could this be the work of the composite man? | BTCUSD on TradingView.com
Learn about the so-called composite man in Crypto
The composite man, according to Wyckoff, was nothing more than big actors – the so-called smart money. These large players will accumulate assets at lower prices, and when they have sufficiently built up a position, they will let their presence be known by raising the price.
In addition to following the textbook Wyckoff accumulation pattern, described above, the spike in price action is suspiciously close to recent moves by bigger actors like BlackRock, Charles Schwab, Citadel Securities, Fidelity Digital Assets, Sequoia Capital, and so on. It is likely that large institutions will act as the “composite man” that Wyckoff was referring to? The market is about to find out.
In Wyckoff’s theory “the compound man lures the public into buying a ‘share’ in which he has amassed a large number of shares…in effect he advertises his shares by creating the appearance of a ‘broad market’.”
Say hello to the composite man @Black stone @employee… pic.twitter.com/mWZwQs0o5q
– Tony “The Bull” (tonythebullBTC) June 20, 2023