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What If Bitcoin (BTC) Is About To Top Out?

What If Bitcoin (BTC) Is About To Top Out?
Breaking News / Bitcoin / Analytics / YouTube

Bitcoin (BTC) has started to show weakness just when everyone expected it to rally higher. A quick glance at the top twenty cryptocurrencies shows us that there is blood on the streets. Now, one could argue that this is just the market cooling off before the next run up but let us not forget that the price has been at major risk of a sharp decline for weeks. The Fear and Greed Index is down only one point from yesterday but sentiment does not take time to change in this market. Taking a look at Crypto Daily Indices, we can see that the Large Cap Index is up from 33.45 to 34.08, the Mid Cap Index is down up from 50.63 to 50.95 but the Small Cap Index is down from 3.19 to 3.15. It means that this might be a good time to move out of small cap coins.

Now, coming to the price analysis, on first glance, we see a lot of confusion short term as Bitcoin (BTC) looks for direction, but on closer observation we see something interesting. The price of Bitcoin (BTC) is closely following a classic Wyckoff distribution schematic. If we compare the two charts, we can see close similarities. Bitcoin (BTC) has printed similar fractals throughout and is now in the UTAD Stage of Distribution. UTAD stands for upthrust after distribution. Now, the price might end up rallying towards $10,000 before it tops out and enters the next phase. At the end of Phase E, we might see the price come down close to $5,000. Looking at the Fiber, we can see that the pair declined sharply when ECB President Mario Draghi opened the door to further rate cuts. This will have strong implications for Bitcoin (BTC) and if the pair ends up falling back into the descending channel, we can see a downtrend in Bitcoin (BTC) at the same time. 

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