Bitcoin – liquidity collection will cause the crash

Hello, everyone!

Yesterday’s the most probable scenario, on which I put my money is playing out right now. The price showed another one local leg up to the upside, after that we saw the bearish reaction. Today Bitcoin is confirming my concerns about the potential price dump.

Let’s take a look at the 1D timeframe of the BTCUSDT chart of the WhiteBit exchange. The price reached the lips of the weekly Williams Alligator indicator. If my assumption about the last wave 5 is true we have to see the dump from current prices with the low probability of the pump to red line, but the dump is imminent. The downtrend can be over only after the 5-wave Elliott cycle with the obligatory divergence creation between wave 3 and 5, we still have not seen it.

Also I want to you to notice the liquidity zones. The market maker tends to collect the liquidity with the minimum effort. We can see that liquidity of all short traders have been already collected. The parabolic growth which we saw last month created a lot of uncollected liquidity of long traders. In my opinion the most logical action of MM now is to initiate the dump below $17k to pick up all this stop losses with the rapid recovery after that.

Good luck!

Trade on WhiteBIT! Use this link to register and receive 40% of trading commissions from your invited users!

Invest in crypto easily and safely with