Bitcoin continues to show the weakness of the current uptrend, but I can see that a lot of shorts have been executed. I suppose we have to see another one final local pump to liquidate all these positions. Moreover the Elliott waves analysis approach tells us the exact target for the potential short trade.
Let’s take a look at the 4h timeframe of the BTCUSDT chart on the WhiteBit exchange. The local parabolic growth is the my favorite formation because it is the 100% sign of the wave 3. What should we do when we see the wave 3 – the correct answer is to wait for the wave 5 end to execute the short trade at the top. Our strongest tool in wave 5 defining is the Awesome oscillator divergence. We can see this potential divergence. The 0.618 Fibonacci extension level shows us the potential wave 5 target – 25k. The price will reach it within couple of days after that the abc correction is anticipated.
I want you also to take a look at the 4h fractal key level = $21400. This is the uptrend protection level at this moment. If we will not see the 25K in the next two days. We can wait this levels to open long position. This is my plan – open short at 25K or/and open long at $21400.