The recent Bitcoin bull market has attracted much more influential names these days. Guggenheim’s CIO Scott Minerd regularly speculates about crypto, Elon Musk is at the forefront of most conversations, and Presidents of many countries now want to see cryptocurrency legal.
Aksel Kibar, who received classical training from the most talented names in technical analysis, has a warning to those who deal with Bitcoin: Do not fall into the possible bear trap. The comment refers to a symmetrical triangle that the entire market is watching and can be used as bait before a sharp reversal.
CMT analyst warns: “Watch out for bear trap with symmetrical triangle drop”
Technical analysis is subjective, but it responds better than most assets due to the speculative nature of Bitcoin. Indicators don’t always work as expected due to extreme moves, but chart patterns, Elliott Wave Theory, Japanese candlesticks and other forms of work do work well.
Anyone proficient in technical analysis can do a good read on Bitcoin. Recently, some of the best have started breaking through the recent crypto correction and Aksel Kibar has now joined the bullish prospect list.
Kibar, a Chartered Market Technician, is classically trained in the simplest signals. The symmetrical triangle is clearly a classical pattern, but the fact that the breakout is so close to the top indicates that it will not act according to that teaching.
Instead, the triangle can be used as bait for bears in an epic bear trap.
$BTC One last comment on this: Unless you are quick to reverse position, do not trade the breakdown from the recent #symmetricaltriangle looking consolidation. Given that we are very close to the apex, it will not behave according to text-book. (1) pic.twitter.com/q4Nv9bAmvD
— Aksel Kibar, CMT (@TechCharts) June 7, 2021
Is the “Very Strong” Bitcoin Uptrend Over?
In a Twitter thread, Kibar continues to share what traders can expect from price action. As long as the one-year moving average holds the current level as support, a reversal candlestick could form and push back to retest Bitcoin highs.
Such reversal candlestick signals result in a daily doji, hammer, or uptrend. Such a fearful and bearish reversal could shake the market further with a short position squeeze.
If for some reason the triangle isn’t a trap, Kibar claims trading the new range at $30,000 to $20,000 is the next best guess.
They are not just any ordinary anonymous crypto analyst. Anyone with this designation means they have passed the CMT Association exams and truly know their job. Also, they would like to work with someone with such status in companies like Bloomberg, Fidelity, Morgan Stanley, Bank of America, Credit Suisse and many other financial giants.
Aksel Kibar also shared this last year…
A very strong trend period is approaching on #BTCUSD This is a monthly scale price chart so don't expect miracles overnight, but the long-term trend remains up and can have another leg up. #cryptocurrency #Bitcoin pic.twitter.com/lJTneyCa15
— Aksel Kibar, CMT (@TechCharts) May 15, 2020