In my last TA post, I talked about the possibility of Bitcoin heading back to the $35-36 range before the halving, and I still don't think I am wrong about that. Are we looking at a bitcoin bull trap? I think so. Let's take a look at why...
Bitcoin is really hitting some resistance at the current range. When I look at other cryptos like Ethereum, it's much of the same. This pattern looks to me like a bull trap. This is where we bounce out of a significant down trend and this price action tends to catch bulls by the short and curlies as they think the price is going to recover and continue to the moon, but it just doesn't work that way. These retracement pumps tend to get people caught in a FOMO mode and then turn on them and head back in the other direction. I believe this is one of those times.
Very rarely does a market like Bitcoin just bounce straight up. It has it's big parabolic rises, yes, as we have seen recently, but this action cannot last forever. In the last cycle, we saw the pump from the 3K range up to nearly 15K and back to the 6.5K range before the halving, so my prediction of seeing a 35K-36K Bitcoin price before April is not out of the cards.
My non-financial advice to traders is if you have been trading this reversal from the 38K range, then you might want to think about taking some profits off the table. Just saying, because that is exactly what I am doing. I am also still DCA accumulating BTC as we go along and will stop that action once we break all time highs again, then it will be off to the races and looking for good market cycle take profit signals.
How are you playing this Bitcoin and crypto action? Do you think we are looking at a bitcoin bull trap?
This was originally posted as an idea on my TradingView account. Check out my profile and while you are there, add the Logical Trading Indicator V.1 to your charts and start trading logically!
Wanna get on a path to financial freedom?
Join the Logical Trading Academy!
https://logicaltrading.academy
Trading Education | Personal Coaching | Trading Indicator | Trading Community
Get my 'Anyone Can Be A Trader' eBook Today!
Just getting started as a trader? Check out my latest book that can give you some direction for your trading journey!
'Anyone Can Be A Trader' is available on the Logical Trading Academy store where you can pay with credit/debit cards or get a discount if you pay with crypto!
Get edge in the markets with the Logical Trading Indicator
Get this game changing indicator that can help you gain some serious edge in the markets while still living your life!
Get the Logical Trading Indicator and start trading logically today!
Additional Blog Locations
Many of my cryptocurrency related articles as well as trading articles can also be found on my crypto research site, Coin Logic.
I also post trading chart ideas on my TradingView Profile.
Disclaimer:
The information in this trade journal is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.