Bitcoin Bull Trap
Updated
Looking at this 4hr chart it looks to me like BTC is forming a bearish Cypher harmonic pattern.
My whiskers (and the chart) are telling me that we will likely push up towards $41,500 and then break down.
For me, this creates a bull trap scenario. I think retail traders could ape in as we get closer to $40,000 and then that will create
the liquidity that the whales are looking for to dump some more.
When the down trend continues I think we will move to around $34,500.
If we lose this level then we could be seeing a larger bull trap play out as the giant bull flag breaks down.
Further downside targets would be around $29,700 then $20,200.
If these levels break I will have limit buys set between $14,000 and $15,000.
On the upside we could see the Cypher roll over and turn into a bearish Shark. This would put the D up around $47,400, which is also close to the 1.618 ext. of the XA leg of the bullish Crab harmonic that has completed. The upside targets are the X, B, C, A points (of the Crab) and then the 1.618 XA at $47,483.08.
For me, we need to get above $47,500 to invalidate the bearish trend and continue the bull trend. Even then, we will need to push above about $50,400 to get back into the blue ascending channel. If that happens I will be howling for the moon!
What do you think is next?
Owhooooo!
My whiskers (and the chart) are telling me that we will likely push up towards $41,500 and then break down.
For me, this creates a bull trap scenario. I think retail traders could ape in as we get closer to $40,000 and then that will create
the liquidity that the whales are looking for to dump some more.
When the down trend continues I think we will move to around $34,500.
If we lose this level then we could be seeing a larger bull trap play out as the giant bull flag breaks down.
Further downside targets would be around $29,700 then $20,200.
If these levels break I will have limit buys set between $14,000 and $15,000.
On the upside we could see the Cypher roll over and turn into a bearish Shark. This would put the D up around $47,400, which is also close to the 1.618 ext. of the XA leg of the bullish Crab harmonic that has completed. The upside targets are the X, B, C, A points (of the Crab) and then the 1.618 XA at $47,483.08.
For me, we need to get above $47,500 to invalidate the bearish trend and continue the bull trend. Even then, we will need to push above about $50,400 to get back into the blue ascending channel. If that happens I will be howling for the moon!
What do you think is next?
Owhooooo!
Note
Trap still in play. Just be aware of the situation and have a plan.
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