Wyckoff Distribution Unmasked on Major Bitcoin Tops

Richard Wyckoff developed his market cycle theory in the early 1900s, dividing price action into four phases: accumulation, markup, distribution, and markdown.

The distribution phase contains specific sub-events, including the buying climax, automatic reaction, secondary test, sign of weakness, and last point of supply, each signaling a gradual shift from demand to supply.

Volume analysis sits at the center of the Wyckoff method, with traders comparing effort (volume) against result (price movement) to detect when large operators are offloading positions. Bitcoin has displayed patterns consistent with Wyckoff distribution at several major tops, most notably in the first half of 2021 before a 50% drawdown.

The method has limits: it does not predict timing or targets, and forcing its schematics onto every chart without confirming volume evidence is one of the most common mistakes traders make.