Bitcoin BULL TRAP!?
Bitcoin is looking considerably bearish based off the structure of price movement since the all time high (ATH) of around 74k.
As shown in the chart, there are 5 waves in orange, with waves (1) and (3) in orange forming 5 clear waves. Wave (5) in orange was so strong downwards that it completed in one movement with barely any reaction to the upside.
After waves (1) to (5) in orange, there has been a weak (a)(b)(c) pattern in yellow to the upside. The bulls have attempted to punch price higher but the bears keep shooting price back downwards.
Soon the people going long (the bulls) will have their resources exhausted and there will likely be an exaggerated move downwards. This could be caused by those who have leveraged long positions being liquidated and panic selling from all people with exposure to Bitcoin.
The way this chart is setting up means that the next move downwards, if it occurs, could be extremely violet and fast, meaning it may be wise to reduce exposure to cryptocurrencies at the moment. Alternatively a short position could be opened to hedge against any potential downside risk.
I am trying to be as objective as I can with this analysis and I am just making a prediction based on the pattern of price movement.
Updates and any predictions on price targets will follow based on the price action of the coming days / weeks.
Thanks for reading and please feel free to add in the comments your view on the state of bitcoin at the moment!
As shown in the chart, there are 5 waves in orange, with waves (1) and (3) in orange forming 5 clear waves. Wave (5) in orange was so strong downwards that it completed in one movement with barely any reaction to the upside.
After waves (1) to (5) in orange, there has been a weak (a)(b)(c) pattern in yellow to the upside. The bulls have attempted to punch price higher but the bears keep shooting price back downwards.
Soon the people going long (the bulls) will have their resources exhausted and there will likely be an exaggerated move downwards. This could be caused by those who have leveraged long positions being liquidated and panic selling from all people with exposure to Bitcoin.
The way this chart is setting up means that the next move downwards, if it occurs, could be extremely violet and fast, meaning it may be wise to reduce exposure to cryptocurrencies at the moment. Alternatively a short position could be opened to hedge against any potential downside risk.
I am trying to be as objective as I can with this analysis and I am just making a prediction based on the pattern of price movement.
Updates and any predictions on price targets will follow based on the price action of the coming days / weeks.
Thanks for reading and please feel free to add in the comments your view on the state of bitcoin at the moment!
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