- Today I opened a short on BTC, and in this analysis, I will tell you why. In the previous analysis called “Bitcoin – The biggest bull trap in history!” I told you I wanted to short Bitcoin at the 0.618 FIB retracement; today we reached the important level and took liquidity above the previous swing high. Now everyone is extremely bullish, and it’s time to short it.
- On the chart, you can see a huge parallel channel on the weekly scale, and today we retested the trendline of the channel and the POC of the previous triangle. This is a very strong resistance, which is why I expect a huge decline in price in the next few days or even weeks. I am a very transparent trader because I share all the trades that I make with the entry points, SL, and TP.
- From the Elliott Wave perspective, we can see a falling wedge, which is a bearish leading diagonal pattern with an overlapping wave structure. Usually you want to short it at wave (4) of the diagonal pattern, and we hit this wave today. In my opinion, wave 2 of the higher degree has been completed, and we are ready for the 3rd wave, which can be extremely steep.
It’s possible that Bitcoin will start consolidating a little bit at the current price, so altcoins can also pump a bit. But it’s only going to be temporary. - Set up notifications for my ideas so you will be alerted in your email when I publish new analyses immediately!
- This analysis is not a trade setup; there is no stop-loss, entry point, profit target, expected duration of the trade, risk-to-reward ratio, or timing. I share my trades transparently and post trade setups privately.
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Comment: My stop loss was hit pretty quickly today, so it was a bad trade. My risk per trade is generally 1% or 2% max.
But rather be prepared for what is coming in the second half of the year. I think 15k is no longer possible, but 21k is actually very likely. On this level is the 0.618 FIB retracement as well. The impulse wave is going to be finished soon, and we are ready for a major ABC correction.
