Onchain Edge
Is BTC in Reaccumulation? Wyckoff and On-Chain Analysis
Bitcoin looks like it’s in a reaccumulation phase: Bitcoin chart with a reaccumulation wyckoff pattern The current Bitcoin price chart matches the Wyckoff reaccumulation phase, with a consolidation range evident from recent price movements. Key features include price bouncing between horizontal support (around 57,178) and resistance (around 71,587), indicating sideways movement typical of reaccumulation. MVRV Ratio: Is 1.97, indicating the market is still above the realized price and hence in a relatively overvalued state. Market participants have significant unrealized profits, typical of a distribution or early markdown phase. In my opinion, this alright for the reaccumulation phase. For the accumulation phase, we would want much lower mvrv values. Exchange Inflow & Outflow: The current trend show decreasing inflow and outflow volumes. Decreasing exchange reserves suggests accumulation as BTC moves off exchanges. This is consistent with the reaccumulation phase. aSOPR: Hovering around 1.0. which means the market is balanced between profits taken and losses incurred, consistent with a reaccumulation phase where neither buyers nor sellers dominate. SOPR Ratio (LTH-SOPR/STH-SOPR): Relatively low values, suggesting reduced profit-taking by long-term holders compared to short-term holders. This is a good sign of bottoming which aligns with the accumulation or reacumulation phase. Exchange Reserves: The exchange reserves have been decreasing for a while. This means BTC is being moved off of exchanges which indicates confidence among holders. Taker Buy & Sell Volume: Decreasing volumes, with buy volume slightly higher than sell volume. Suggests a period of low volatility and possible accumulation. If the reaccumulation phase continues, we could expect a breakout upwards (markup phase) as the next step in the Wyckoff cycle.