Coinbase ($COIN) in phase D of Wyckoff accumulation schematic #2
Coinbase (
COIN) shows strong similarities with Wyckoff accumulation scheme #2.
Unlike Wyckoff accumulation scheme #1, #2 doesn't have a "spring," but in phase C, the bottom of the TR (Trading Range) is tested by selling that is reversed by an aggressive buyer. Phase C and the buyer have similarities with Cathy Wood's
ARKK investments purchase of COIN, where she bought 400,000 shares of Coinbase on 6th of June, undoing the selling pressure. This can be observed in the chart by looking at the huge volume increase on June 6th, see; "Last Point Of Support" (LPS) in phase C.
Where is price now?
The price is currently in phase D. In this phase, the stock demonstrates strength proven by increasement of volume and price increase (SOS) and price fluctuates near the upper end of the range. Price might test Back up/ Last point of Support and consolidate upper end of the TR.
What's next?
With the first announcement (not the final decision) regarding theARKK ETF approaching on August 13th, this stock may break out of the TR after spending some time in phase D and send stock price higher due to positive news.
Important to mention;
Because there is no "spring" shown in the chart, identifying phase C is more challenging. Typically, the Wyckoff accumulation TR in phase C has clear aggressive sellers pushing the price below the TR, only to be bought up afterward. This is not the case now.
Alternative
One scenario to consider is that phase D might actually be Phase C in Wyckoff accumulation scheme #1, and after this, there could still be aggressive selling pressure causing the price to fall below the TR and form a spring. This could be accompanied by negative market sentiment or bearish news for Coinbase or the ETF decission.
COIN) shows strong similarities with Wyckoff accumulation scheme #2.Unlike Wyckoff accumulation scheme #1, #2 doesn't have a "spring," but in phase C, the bottom of the TR (Trading Range) is tested by selling that is reversed by an aggressive buyer. Phase C and the buyer have similarities with Cathy Wood's
ARKK investments purchase of COIN, where she bought 400,000 shares of Coinbase on 6th of June, undoing the selling pressure. This can be observed in the chart by looking at the huge volume increase on June 6th, see; "Last Point Of Support" (LPS) in phase C.Where is price now?
The price is currently in phase D. In this phase, the stock demonstrates strength proven by increasement of volume and price increase (SOS) and price fluctuates near the upper end of the range. Price might test Back up/ Last point of Support and consolidate upper end of the TR.
What's next?
With the first announcement (not the final decision) regarding the
ARKK ETF approaching on August 13th, this stock may break out of the TR after spending some time in phase D and send stock price higher due to positive news. Important to mention;
Because there is no "spring" shown in the chart, identifying phase C is more challenging. Typically, the Wyckoff accumulation TR in phase C has clear aggressive sellers pushing the price below the TR, only to be bought up afterward. This is not the case now.
Alternative
One scenario to consider is that phase D might actually be Phase C in Wyckoff accumulation scheme #1, and after this, there could still be aggressive selling pressure causing the price to fall below the TR and form a spring. This could be accompanied by negative market sentiment or bearish news for Coinbase or the ETF decission.
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