Yesterday I explained why the Bitcoin created the bull trap. Today we can clearly see the falling wedge pattern was formed on 4h timeframe. For most of traders such pattern us the bullish sign because it appeared on the uptrend, but I see the danger in this pattern because it looks like the local distribution pattern, but not the trend continuation one.
Let’s take a look at the 4h BTCUSDT chart of the WhiteBit exchange. The mentioned wedge is too huge in comparison to the whole previous upside impulse. Moreover the upward sloping trendline was broken, which could be the sign of the trend end.
The price now is close to the key level for the bulls. The Fibonacci golden pocket and key fractal level is located here. While the price is staying above the $21440 the uptrend is still valid. If the price will close below this level with the 4h candle the trend will be broken. There are a lot of liquidity below this level. I think we will see the bullish reaction, but finally I am still suppose the bearish scenario.
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