Two days ago I gave you an idea about the mid-term analysis on Bitcoin. Briefly, I am waiting for the last bearish leg down. Before it I made the local analysis on the 1h timeframe using the Trading Chaos approach and I was quite successful. One year ago I red 3 books about the Trading Chaos and make a conclusion that its useless theory. But one month ago I decided to study this approach again and found that I was unexperienced to understand it in the correct way Now I am practicing in this approach on the local 1h timeframe because I need short-term strategy. On the 1D timeframe I am successful, but it is not sufficient for me. Today I am going to continue analyzing the local timeframe using Trading Chaos.
Let’s take a look at the 1h timeframe BTCUSDT chart of the WhiteBit exchange. We can find here the completed 1-2-3-4-5 Elliott waves cycle. The divergence with the Awesome oscillator confirms this idea. Today the price crossed above the Williams Alligator indicator’s balance (red) line, which means the market is in correction right now. The maximum target for the correction is the Fibonacci golden pocket ~ $19900 before the new crash. It looks like the bull trap is incoming because now the crowd is not disappointed and think that the market can start the bull rally in every moment. This is the signal that we have to wait a little bit more.
Best regards, Ivan
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