I've noticed that many newcomers to crypto have no idea about the Wyckoff method, and that's a huge mistake. This approach has been working for over a century, and I personally see how it applies to crypto assets. Richard Wyckoff was a legend of his time—a trader and educator who understood one simple thing: big players always move the market, and if you can read their moves, you gain a huge advantage.

The method is based on the idea that the market goes through five clearly defined stages. First is accumulation—when smart money quietly enters a position while others are sleeping. Then comes the uptrend, when retail traders start noticing the rise and join in. Next, large players begin distributing their positions, again discreetly. After that, a downtrend follows—everything drops quickly because panic spreads faster than optimism. And finally, consolidation, when the market pauses and waits for a new direction.

What’s interesting is that the Wyckoff method is built on three fundamental laws. The first is the law of supply and demand. It’s simple: if demand exceeds supply, the price rises; if less, it falls. The second law relates to cause and effect. Every market movement has a reason, and understanding the phases helps you see why big capital acts the way it does. The third law is effort versus result. Price movement must be confirmed by volume. If the price is soaring but volume remains silent, it’s manipulation for further selling.

Now, about practice. Trading ranges are key to everything. Wyckoff believed that analyzing these ranges provides deep insight into the current phase. When an asset forms a sideways movement after a downtrend, that’s accumulation. Characteristic points appear: preliminary stopping, climax of buying, automatic rally, secondary test. After that, a big player can perform a final manipulation—so-called Spring—to squeeze out the last retail traders. Then, a breakout beyond the range begins a true uptrend.

With distribution, it’s the opposite. After an uptrend, a sideways range forms at the top. Here, big players work with liquidity from above, perform an Upthrust after distribution to shake out the last bulls, and then the price starts falling.

An important point is volume. I always look at volume because it doesn’t lie. An increase without volume is a red flag. Growth with volume is strength. The Wyckoff method requires confirmation of volume at each key level.

People often ask if this method works in crypto. Honestly? Yes, it does, and even better than on traditional markets. Crypto is more volatile, but that’s a plus—the phases are more pronounced. The only caveat is to choose liquid assets. On microcaps, the Wyckoff method might not work well because there’s too little institutional capital.

When I select an asset for analysis using this method, I check a few things. First, the risk-to-reward ratio should be at least 1 to 3. Second, I make sure the previous trend has truly ended. Third, I look to see if the asset has completed all cycle phases and if there was a final test. And of course, I check volume and the asset’s reaction to the overall market growth.

The main rules are simple: never trade against the main trend, determine the current phase before entering, and use volume to confirm. That’s all you need to start applying the Wyckoff method in your trading. Of course, this is just the tip of the iceberg—deep understanding requires practice and constant analysis, but here are the basics.

By the way, I saw that BTC is currently trading around $67,843. It’s interesting to see how classic analysis methods work on this asset too. If anyone is interested in delving deeper into the Wyckoff method, I recommend spending time studying it—it's an investment in your trading skills.