the chain is from the yellow circles.
What I want is a way to draw the next yellow circle given all the ones before it:
I know how to draw the first circle $(P_0Q_0X)$.
I know the (nameless in the picture) contact point of the $n-th$ circle with the $n+1-th$ one lies on a circle centered at $H = P_0Q_0 \cap BC$ passing through $C$.
I know lines $P_nQ_n$ all meet in $H$.
I know quads $P_nP_{n+1}Q_{n+1}Q_n$ are cyclic.
I still can't find a simple way to construct the next circle given the previous one.I know there are one or two inversions that can do the trick but I would prefer if we avoid the temptation of looking for invertions.
I can't prove but I know the circles $P_nQ_nC$ are tangent to $BC$ at $C$
EDIT: also don't just use the general apollonius solution unless you can make sure you can show some symetry from this particular problem. For example: because we know the contact points between two circles lie on a circle centered at $H$ passing through $C$ we don't need the full $CCC$ but we can use $PCC$ (of course you guys are suposed to show more simplifications)


The diagram is copied here for convenience. I'll refer to the circle with center $L$ as the blue circle and the circle with center $B$ as the white circle.
We're trying to find the blank yellow circle, given the previous circle $P_3Q_3C_3$, where $C_3$ is the unnamed contact point.
Construction using inversion: For the circle $c$ through the points $P_n,Q_n,C$, we can invert $P_{n-1}$ and $Q_{n-1}$ in $c$ to get $P_{n+1}$ and $Q_{n+1}$. You have also mentioned that you can construct the contact points. So once the first two circles have been constructed we can leapfrog to construct the rest of them.
To show this, invert the diagram in a circle with center $C$.
Construction not using inversion: Let $L'$ be the point on the upper half of the blue circle such that $L'L$ is perpendicular to $BO_3$. Then let $Q_4$ be the other intersection of $L'P_3$ with the blue circle.
Similarly, let $B'$ be the point on the lower half of the white circle such that $B'B$ is perpendicular to $LO_3$. Then let $P_4$ be the other intersection of $B'Q_3$ with the white circle.
We now have 3 points of the blank yellow circle, so we can construct the circle and its center.
Note 1: this is an adaptation of a construction at Eppstein's The Geometry Junkyard and is really just a $PCC$ Apollonian construction. The problem is also equivalent to finding the incenter of a hyperbolic triangle. Baragar and Kontorovich's Efficiently constructing tangent circles claims to have an even shorter construction but I have not tried it out.
Note 2: You can prove that circles $P_nQ_nC$ are tangent to $BC$ by inverting in a circle centered at $C$. They map to vertical lines.