Bitcoin Goes Bullish Again | Bull-Run Or Bull-Trap?
Well, Bitcoin has been making pretty savage moves recently. After climbing up to the $7150 price mark, Bitcoin dumped all of a sudden to $6800 and then again slowly risen from that level to $7050.
Now, Market volume is decent but is the latest move by Bitcoin is reliable?
Is it really a Bull-run this time and not a Bull-trap?
Well, let's find out the probabilities of both the scenarios with chart analysis:
As you can see in the chart, Bitcoin broke $7000 support recently before falling down to $6800. After that, it kinda accumulated in that range and within 24 hours we again saw a pop back upto $7080.
Now, again price seems to be weakning and slightly falling.
Although volume is still on lower side.
- If Bitcoin goes Bullish from here, the first obvious resistance should be $7140 and then $7400. Although, technically $7100 has also become a resistance level in last 48 hours.
- If Bitcoin goes Bearish, the first support would be $7000 and then $6800. After breaking all these support, BITCOIN can pretty much free fall to $6400 quite easily.
- So, this can be a Bull trap as we havent negated Rising wedge pattern and we're still trading in this patter.
So, keep a close watch on Bitcoin's price and use tight stop loss.
Thanks for reading ..!
From what I understand, this is still a dead cat bounce, not a bull trap. The difference is when the technical indicators previously showed you bull signs above the last high fib seq which right now is sitting at about $8500.
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Fingers crossed BTC can continue the momentum, so far it has struggled but I imagine we will see a small run up in anticipation for the ETF, should it be rejected again I would guess we will be closer to 6000 again.