Hello and Merry Christmas, everyone!
I wanna talk about Bull and Bear cycles on Bitcoin. Everybody used to see the big bitcoin 4-year cycles, but market changed because institutional investors came to the market. Before 2020, cryptomarket was looks like bubbles. It happened because there were only retail investors which are too emotional and FOMO buying the asset when it grows.
Last year we thought that the bear market has started in May, when the price fell down 50% from ATH, but after that the price increased again above the ATH. This situation we saw the first time in the history on BTC.
I am sure that we should buy local bottoms and sell local tops and not to wait the global bottom and global top to do it. We should wait for the strong signals to buy and sell and nothing else.
Today I want to show you very interesting scenario. It looks like that the Bitcoin is forming the huge rising wedge. This rising wedge has the clear central line which the price respects. In the short term I suppose that the price is going to form the bull trap near $57000. It does not contradict to my previous analysis. After reaching this central line I expect the decrease to the support line, which is going to be the nice buy level. The final stage of price growth is going to be slightly above the ATH.
The rising wedge is the bearish formation. Finally it is is going to be broken down. The target for this pattern is next to $20000, but the are a lot of events is anticipated before this.