Bull Trap : Characteristics when the price is close to the APEX
Hello there my fellas, welcome back to my Sunday update about bitcoin!
Well well, it has been a very interesting play for bitcoin for now. The condition is this, The price is moving very close to the upper line of the huge descending triangle (green line) and of course if we look at lower time frame, it looks like the price is going to break this resistance trend line. I am thinking of it more like a possible bull trap moves if it breaks the green resistance trend line on lower time frame and I believe it will only produces a long wick to the upside.
Yes, maybe it is a very random statement for most of you because we have seen a strong volume and strong dynamic support that has defended the price really good. But, let's think like we are the whales who want to open a short entry because we see a huge descending triangle in play and the price in higher time frame view is losing a lot of strength! As a whales, I will definitely try to 'kill' the shorter in lower period of trading window. Why? because I want to get a short entry at higher rate so my risk to reward ratio will be better.
The second reason is because the price is moving very close to the APEX of huge descending triangle, I am very sure there will be a lot of faking out moves to represent the war between the bulls and the bears!
I believe the price will touch again the $10500 region as it is the golden pocket region or we can considering the area between the $10650 - $10700 as the last region for the long wick to the upside because it locates right at the 78.6 fib level and the previous swing high.
Thank you and the daily view will be shared on update section.
Well well, it has been a very interesting play for bitcoin for now. The condition is this, The price is moving very close to the upper line of the huge descending triangle (green line) and of course if we look at lower time frame, it looks like the price is going to break this resistance trend line. I am thinking of it more like a possible bull trap moves if it breaks the green resistance trend line on lower time frame and I believe it will only produces a long wick to the upside.
Yes, maybe it is a very random statement for most of you because we have seen a strong volume and strong dynamic support that has defended the price really good. But, let's think like we are the whales who want to open a short entry because we see a huge descending triangle in play and the price in higher time frame view is losing a lot of strength! As a whales, I will definitely try to 'kill' the shorter in lower period of trading window. Why? because I want to get a short entry at higher rate so my risk to reward ratio will be better.
The second reason is because the price is moving very close to the APEX of huge descending triangle, I am very sure there will be a lot of faking out moves to represent the war between the bulls and the bears!
I believe the price will touch again the $10500 region as it is the golden pocket region or we can considering the area between the $10650 - $10700 as the last region for the long wick to the upside because it locates right at the 78.6 fib level and the previous swing high.
Thank you and the daily view will be shared on update section.
Comment:
FYI : If I use body to body connecting method, there isn't any sign of break out the upper line of the triangle. it is way further than the wick to wick method.
FYI : If I use body to body connecting method, there isn't any sign of break out the upper line of the triangle. it is way further than the wick to wick method.
The purple diagonal box is the area to represent the phase 1 and phase 2 of the break out strategy. Any push above the white trend line will make my analysis become invalidated