Bitcoin - bull trap is imminent!

Hello, everyone!

First of all I want to discuss why I am always searching for divergences and why I use so doubtful analysis approach as Elliott waves? You often write in comments that Elliott wave analysis is trash. I can partially agree with you - it is not necessary to draw each wave, but it has one super frofitable setup - end of wave 5. It is the most profitable setup because it is the start of new trend. What is wave 5? Wave 5 is the automatic rally after the superimpulsive wave 3. Wave 5 has now volume and strength. It greatly measures by oscillators such as MACD, AO, RSI. These indicators show us the divergence - the most significant indicator that we are looking at the waves 3 and 5. Now let's go to analysis!

Let's take a look athe 12h timeframe of BTCUSDT chart of the Whitebit exchange. I can see the weakness. The price formed the "falling wedge". I use quotes because as you know I think that chart patterns is trash. What is important? This wedge has the resistance line, which have been already broken. Bullish sign? No! Look at the volume - it's extremely low. I am almost sure it's fakeout and we will see the new lower low, drop to the lower band of "wedge".

When it happens the bullish divergence will be created at 12h with the RSI. It is not the reversal formation, but bull trap creating with the pump to $21500 is almost guaranteed. In general at these actions are happening below Fibonacci golden pocket. It is the bearish signal, which means that the price will set the global lower low(below $17500).

Best regards, Ivan

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