Bitcoin continues to demonstrate a price structure that closely follows the established Wyckoff market cycle, according to insights shared by CryptoELITES. This framework highlights a sequence of phases: accumulation, markup, distribution, and markdown. The analysis indicates that the market has already navigated through the initial two stages.
In the early part of the chart, Bitcoin displays a clear accumulation zone characterized by erratic price movements following a previous decline. During this accumulation phase, stronger market participants gradually absorb selling pressure. This phase transitions smoothly into a markup period, marked by consistent higher highs and higher lows as the price ascends with renewed momentum.
The markup phase is particularly significant, as it confirms that demand has outstripped supply, elevating the price into a new trading range. This upward movement represents the most vigorous section of the market cycle, as illustrated in the Wyckoff schematic.
As noted, Bitcoin is adhering to the Wyckoff cycle, moving through accumulation and markup phases. Currently, the price action indicates a sideways movement at elevated levels with rising volatility. This behavior often signifies a critical decision-making period rather than a continuation of trends.
The sideways action suggests the early stages of distribution, where larger participants may begin to offload positions during periods of strength. It is essential to recognize that distribution typically unfolds over time rather than as an immediate downturn. Prices can remain high for prolonged periods as momentum diminishes, and market participants grow increasingly restless.
Understanding why markdown does not happen immediately is crucial. The projected trajectory illustrated in the chart suggests a gradual shift rather than an abrupt decline. According to Wyckoff theory, markdown usually initiates only after the distribution range has fully matured and buyers are spent. Until then, prices may continue to oscillate or experience false breakouts, leaving both bulls and bears uncertain.
This context helps to clarify why sharp price reversals are uncommon right after reaching all-time highs, as markets often take time to deliberate before committing to a new trend.
The key takeaway from the analysis is that the cycle remains intact. Bitcoin is not breaking down or invalidating previous phases; instead, it appears to be progressing through the Wyckoff sequence. The current market behavior aligns with a transitional phase between markup and potential distribution, where patience and decision-making are paramount.
Ultimately, whether the price will resolve upwards or shift into a markdown phase hinges on how effectively demand can continue to absorb supply at these levels. For now, the observed structure indicates progression rather than failure within a clearly defined market cycle.
