Previously, I’ve demonstrated stepping-stone descending horizontal Wyckoff re-distribution trading ranges for BTC . Interestingly, the last 3 transitions from Wyckoff re-distribution Phase E to Phase A were similar. In all 3 cases, we observed a climatic level of volume . In all 3 cases, we observed sell bars with a large spread. The percent change in price for these Phase E/Phase A transitions were -26.84%, -21.28%, and -24.98% in Dec 2021, Jan 2022, and May 2022, respectively. In all 3 cases, we observed a selling climax ( SC ), which serves the purpose of stopping the down trend, followed by an automatic rally ( ARa ). I expect that we will observe an ARa to the first area of important resistance, which is the open of the May 9 sell bar ($33,945).

I have opened a long position at $30,476 and I have a take profit target of $33,945, which is an 11.38% profit.

Significant bars, which help define important areas of support and resistance , are given by the blue shading. The blue arrows point to volume spikes.

Wyckoff abbreviations: automatic rally ( ARa ), selling climax ( SC ), secondary test (ST), upthrust (UT), failed upthrust (FUT), last point of supply (LPSY), shakeout (SO), sign of weakness (SOW), Phase A ( Ph A), Phase B ( Ph B), Phase C ( Ph C), Phase D ( Ph D), Phase E ( Ph E).

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