Bitcoin – a new bull trap is coming!
Hi all!
Two days ago I shared with you the idea of a medium-term analysis for Bitcoin. In short, I’m waiting for the last bearish leg down. Before this, I carried out local analysis on the 1-hour timeframe using the Trading Chaos approach and I succeeded. A year ago I read 3 books about Trading Chaos and came to the conclusion that it was a useless theory. But a month ago I decided to look into this approach again and found that I didn’t have the experience to understand it properly. On the 1D timeframe I succeed, but it’s not enough for me. Today I will continue analyzing the local timeframe using Trading Chaos.
Let’s look at the BTCUSDT chart on the 1-hour timeframe of the WhiteBit exchange. Here we can find the completed Elliott wave cycle 1-2-3-4-5. The divergence from the Awesome Oscillator confirms this idea. Today the price crossed the balance line of the Williams Alligator indicator (red), which indicates that the market is now in a correction. The maximum target for correction is the Fibonacci golden pocket ~ $19,900 before a new collapse. It looks like the bull trap is approaching because now the crowd is not disappointed and does not think that the market can start a bull rally at any moment. This is a signal that you need to wait a little longer.
Best regards, Ivan