Yesterday we considered the Bitcoin analysis using the trading chaos approach. We are in the global wave 5 and the bottom is close to the current prices. But today the market gave us the information how the bottom could form.
On the 4h timeframe on the BTCUSDT chart of the Kucoin exchange we can see the subwaves of the wave 5. The last subwave is happening right now and I am waiting for the lower low to form the true divergence with MACD which will lead to the divergence on the higher timeframes if you remember. Last time I saw such signal in January at $34k before the bounce. Today I suppose that the price will be stopped at $19600 which is the S1 monthly pivot before the upside correction start. Supply zone at $27k could be the nice exit point for this trade.
On the chart below we can see the SPX which confirms my idea on BTC. You know that it is the highly correlated assets and the upside correction is going to happen on SPX also. Using the trading chaos approach we can interpret the 1-2-3-4-5 Elliott waves cycle and the last wave is about to end because it is in the Fibonacci zone 27, from this point the bounce is very likely to happen.