Last time I told you that the current pump is the classical bull trap, but I was struggled to define the exact target.
Hello, everyone!
Last time I told you that the current pump is the classical bull trap, but I was struggled to define the exact target. Today I did it using the Trading Chaos approach.
Let’s take a loos at the 1h timeframe of the BTCUSDT chart of the WhiteBit exchange. Here we can clearly see the 5 waves Elliott cycle. It is the last bullish wave before the huge crash. Wave 2 ended exactly at 0.5 Fibonacci level – the natural target. Wave 3 ended exactly at the 1.61 Fibonacci level and we saw the wave 4 to 0.5 level again.
Wave 5 have the complex counting methodology. We used the distance between the start of the wave 1 and top of the wave 3, measured this value from the wave bottom. This is the maximum target for the wave 5. The most probable target is the 0.61 Fibonacci level of this value. I predict $22500 as the maximum target before the dump.
Best regards, Ivan
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