The Wyckoff cycle outlines four main phases: accumulation, markup, distribution, and markdown. According to CryptoElites, Bitcoin has already completed the first two phases. Accumulation occurred during a period of consolidation after prior declines. Markup followed as the price advanced in a structured upward move.
The analyst pointed out that Bitcoin is currently trading within a band near its peak levels. Along with increased volatility, this sideways movement is underway. Such a situation is often perceived as a transition phase rather than a clear-cut trend. The graph shows periodic price movements within a defined range, indicating a distribution consistent with the Wyckoff model.
Typically, the distribution shows a strong equalization of buying and selling after a major price rise. The price during this market condition is determined as traders figure out their positions. CryptoElites said that one must be very patient during such periods, as results do not come quickly. The price will stay in a certain range until a directional move is finally made.