Bitcoin (BTC) is expected to finally close the weekly candle above $4,000 given its current outlook. The 1H chart for BTC/USD shows that the price has ample room to shoot towards the top right of the bullish gartley formation before the weekly close. This would set the ground for a steady decline in the weeks ahead as the bears assume control. However, this time around things are not so simple. While the bulls are not in charge, the bears seem to be losing control as well as the number of margined shorts has just topped out and we could see a strong decline in sell pressure starting next week. This means that the decline from $4,000 or higher to begin the fifth corrective wave to the downside might not be so simple and straightforward.
Considering that a lot of traders are expecting a sharp decline now that BTC/USD seems to have topped out on the weekly time frame, we expect that the whales might lure some bears into opening margined shorts at this point just to liquidate their positions soon afterwards. This would come in the form of a short squeeze which would result in margined shorts liquidated or forced to close which will lead to a bug spike in BTC/USD. That might end up trapping some bulls and only then the whales would pull the plug and force the price to decline. We could have seen the decline last week as well but the setup was not as confusing so the whales removed all hope of a decline by pulling the price around the weekly close so as to prevent a close above $4,000.
The price is very likely to close above $4,000 this time but the setup is a lot more confusing.