- It looks like Bitcoin has completed the first bullish impulse wave, which is a very positive sign for the future, but right now the correction is in progress.
- As you know, from the Elliott Wave perspective, wave 2 corrections are usually deeper, especially in crypto. 0.618 FIB or even lower is a classic retracement, and because we have a huge unfilled GAP, this is going to happen!
- 0.618 FIB is at 18658 (LOG), and the start of the gap + POC of the previous consolidation structure is at 16830. Only these two levels are important; the others are insignificant. So you want to buy bitcoin at these points!
- The market always moves in waves, no doubt about it. The waves in crypto are absolutely different from the stock market because different environments have different personalities. What works on the crypto market doesn’t work on the stock market. If someone claims that his bot or trading system works on all markets, including forex, indices, crypto, commodities , and stocks, he is most likely lying to you. It is best to concentrate on a single type of market; in my case, that is crypto. I don’t trade forex, stocks, or gold because the market movements are very different. It’s like comparing apples to beef steak; they look different and taste different. It’s better to eat the beef steak.
- We can see on the chart that there is a large unfilled GAP between approx. 16830 and 20407. These gaps tend to be filled sooner or later. I think maybe it’s better to fill the gap right now than next year. You probably do not want Bitcoin to go to 40k and then dump back to 16k next year; this would be as ugly as the COVID crash in 2020.
- The bulls didn’t react to the major supports on lower timeframes, and it’s a huge sign of weakness at this moment. The structure was bullish , but currently at this point, it’s extremely bearish to me.
- So what is the plan now? You can trade Bitcoin on futures and trade reactions on the previous structures. For example, 21,950 is a strong level and bitcoin could bounce from it, so you can take some intraday trades with a few % of gains before it collapses down to the abyss. You can definitely short bitcoin . I will make these types of trades in the next few weeks. Once bitcoin reaches my reversal zone, I will take some brutal long trades with an extremely high RR and a target of 30k+.
- March is going to be a very bearish month. And usually Bitcoin starts to pump significantly when April starts. You can do a back test. April is a very positive month.
- https://www.tradingview.com/chart/BTCUSDT/taGCftzR-Bitcoin-to-18k-The-big-crash-is-coming/
Entry: 21833.30
Profit: 22864.19 (4.72%)
Stop: 21327.15 (2.32%)
Risk-To-Reward: 2.04
Expected duration: 12 – 72 hours