Is price discovery phase 2 over?

BTC: $49,567
OBTC: $20,596
VG: 7.79

In the last update, we discussed the possibility of a deeper correction, but generally expected this correction to be in the middle of this phase of price discovery, rather than ending it.

Thus far, this has been the case — this correction is much more like the one in early January, that saw BTC drop from $34K>$28K, before continuing on to $42K. For the phase ending correction, we’re looking at a fall from VG ~9 to VG ~7 (with wicks below), and then straddling VG ~7 for a few weeks as we reaccumulate.

Currently, VG is at ~7.8, which is fully in line with the expectations of a mid-phase correction. If we see VG consolidate around ~8, this will likely be merely a stepping stone to continuing price discovery above $58K. Of course, the possibility of a deeper correction down to VG ~7 and consolidating there does remain open, but less probable. The longer we consolidate around VG ~8, the more likely bullish continuation becomes.