The recent Bitcoin bull market has attracted a lot more influential names these days. The CIO of Guggenheim Scott Minerd regularly speculates on crypto, Elon Musk is at the forefront of most conversations, and the Presidents of several countries are now adopting the cryptocurrency as legal tender.
One of the most skilled names in technical analysis, the classically trained Aksel Kibar, has a warning for those involved in Bitcoin: don’t fall for the possible bear trap. The comment is in reference to a symmetrical triangle the entire market is watching, which could be used as bait before a sharp reversal.
CMT Warns: Beware Of Bear Trap With Symmetrical Triangle Breakdown
Technical analysis is subjective, but because of Bitcoin’s speculative nature, it responds better than most assets. Indicators don’t always work as expected due to extreme movements, but chart patterns, Elliott Wave Theory, Japanese candlesticks, and other forms of the study all work well.
Anyone proficient in technical analysis can get a good read on Bitcoin. Recently, some of the best there are have begun breaking down the recent crypto correction, and Aksel Kibar has now joined the growing list.
Related Reading | Lifelong Technician, Fidelity Director Breaks Down The Bitcoin Correction
Kibar, a Chartered Market Technician, is classically trained on the simplest of signals. The symmetrical triangle was so obviously text book, but the fact that the breakout came so close to the apex suggests it will not behave according to that book.
Instead, the triangle could 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 Kibar Called For Now Finished?
In a Twitter thread, Kibar continues to share what traders could expect from price action. So long as the one-year moving average holds the current level as support, a reversal candlestick could form – pushing Bitcoin back to retest highs.
Such reversal candlestick signals would result in a doji, hammer, or bullish engulfing on the daily. With sentiment so fearful and bearish, a reversal could shake up the market further with a short squeeze.
Related Reading | The Most Profitable Signal In Bitcoin Is Back And About To Trigger
If for some reason the triangle isn’t a trap, Kibar claims that trading the new range between $30,000 and $20,000 is the next best bet. But should you trust this so-called Chartered Market Technician?
They’re not just some run-of-the-mill anonymous crypto analyst. Anyone with that designation means they’ve past the CMT Association exams and truly know their stuff. It also provides someone with such status a fast track to working at companies like Bloomberg, Fidelity, Morgan Stanley, Bank of America, Credit Suisse, and many other behemoths of finance.
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
Featured image from iStockPhoto, Charts from TradingView.com