Final Bitcoin Bull Trap Before Crash

Sell in May and Go Away might have been delayed for a while this time but it is definitely around the corner. The price of Bitcoin seems to be on the verge of the final bull trap before the major crash. It appears that the market makers and whales want to trap in more bulls before the major decline by printing an inverted head and shoulders formation. This is a trick they have played many a time but the majority of retail traders continue to fall for it because of fear of missing out.

The 1H chart for BTC/USD “looks” bullish for now but that is what the major stakeholders in this market want retail traders to believe before they pull off the plugs. The next downtrend is going to be extremely devastating. It could potentially drag BTC/USD straight below $3k this time considering the S&P 500 (SPX) is also primed for a major correction. At this point, the ongoing rally is about shaking out the bears who entered short positions early. Once this is done and more retail bulls are suckered in, the market will crash.

The vast majority of retail traders in the cryptocurrency market still think Bitcoin is going to be a hedge during the upcoming crisis. We have plenty of precedents that suggest otherwise but they will never believe otherwise till it’s over and then it will be too late. We saw how the cryptocurrency market crashed previously when the stock market declined. This time, it risks a much bigger decline which is why there is more reason to be cautious.