In recent days, the cryptocurrency market has witnessed a significant decline, leaving many investors feeling confused and disoriented. Bitcoin plummeted by 15% while altcoins "fell like autumn leaves" with drops ranging from 30% to 70%. Nevertheless, as I warned earlier, this is not surprising for those who closely follow my analyses.
Bitcoin: Short-term recovery or bull trap?
Bitcoin has bounced from 92k to 99k, creating hope that a bottom has formed. But be cautious, don’t let temporary hopes deceive you! Based on Elliott wave analysis, this is clearly just a bounce in a larger downtrend. The recent crash was a strong wave 12345, signaling the beginning of a larger corrective structure shaped like ABC.
Wave A: The recent strong decline has been completed.
Wave B: We are in a short-term recovery phase, but it is highly likely that this is just a "bull trap."
Wave C: Expected to bring Bitcoin back to the 85k range, where there is an unfilled value gap (FVGAP) on the daily chart.
Bitcoin Trading Strategy
According to Fibonacci Extension, the 85k level is an attractive price area to look for opportunities. However, be patient and wait for a clear confirmation signal. Rushing to catch the bottom at this stage can lead to high risks.
Altcoin Situation: Seize the Opportunity
Altcoins are currently experiencing significant declines, with some projects losing more than 70% of their value. This opens up great opportunities for those willing to seize them when prices adjust deeply enough. Stay calm and selectively choose projects with solid fundamentals, while waiting for signals from the broader market before investing.
Advice for Investors
Patience: This is not the time to rush into the market.
Technical Analysis: Always use tools such as Fibonacci and Elliott waves to identify important price areas.
Do not be influenced by emotions: Short-term bounces can make you complacent.
Research thoroughly: If you want me to analyze any altcoin, please leave a comment.
Message
Investing is not difficult if you have a clear strategy and a good mentor. Follow me for more in-depth analyses and effective trading strategies. Remember that this is not a trading signal as I do not publicly provide stop-loss levels. Detailed information will be shared privately with those who accompany me.
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