Bitcoin is forming the bull trap right now!

Hello, everyone!

I hope you enjoyed my last two trades, it were extremely risky, but we took very nice profit. I have completely changed my mind about trading. As you know I have lost significant amount of money, shorting the market during current bull rally. It was the moment where I fully understood that market is unpredictable. That's why I also revealed that Elliott waves are needed not for entering position and predicting the future, but for the verification if the market is in impulsive or corrective wave right now. I was too self-confident using waves and forgot about other Trading Chaos tools. Now I started to use them all.

We have 1h time frame of the BTCUSDT chart. The price hit exactly my target for the long trade and started local retracement. Now we can see that it has already formed two up fractals and one downfractals. It means that we have the fractal signals for both sides, long and short. Looking at the higher time frames we can notice the multiple bearish divergeneces. That's why in my opinion the long trades now are risky. I will remind you, divergence is the greatest predictor that the wave 5 has been ended. It is not the signal, just caution.

What about potential trades? We have the key fractal level $23564. If the price will break this level I am going to open short with the stop-loss above the second up fractal $23893. take profit I am going to place at $22575. But we have to watch out carefully the moment when price approaches the crossover of the trendline support and resistance, we can see the reaction from there.

If the signal will be activated it is going to be under the red line of the Williams Alligator indicator. It confirms the signal's validity. Awesome Oscillator has also shown us the short signal, which enhanced our thoughts.

Best regards, Ivan

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