We have curious questions about what’s next for Bitcoin. Frankly, a bull trap does not belong to desires at all. Are we exposed to such a situation now? Let’s look at our article.
Bull trap for Bitcoin?
Veteran crypto trader Tone Vays points to a bull trap for Bitcoin. He says that BTC is still in bear territory despite the bounce from last week. Addressing 123,000 YouTube subscribers, Vays emphasizes some points. He says that Bitcoin’s recent rally was not enough to ignite a new uptrend for BTC. According to the crypto strategist, BTC retested a key moving average as resistance on the daily chart. However, after that, Bitcoin is in a downtrend.
Vays says that to start a new uptrend, BTC must convincingly break through several resistance levels. The resistance levels indicated by Vays are the $27,000 and $28,000 levels. If Bitcoin does not exceed these levels, the final bounce will be short-lived, according to Vays.
BTC daily movement
Daily technical analysis shows that the BTC price has fallen inside a descending parallel channel since the beginning of April. Such channels are considered corrective patterns. As a result, a breakout of the channel is the most likely future price scenario. On June 15, BTC price bounced at the confluence of the $25,000 support levels. This area is the 0.382 Fib retracement support level and a crucial support area. Since the bounce, BTC price has moved up towards the resistance line of the channel.
The RSI is a momentum indicator used by traders to assess whether a market is overbought or oversold and to determine whether an asset should be accumulated or oversold. Readings above 50 and an uptrend suggest that the bulls still have an advantage. On the other hand, readings below 50 show the opposite. Even though the RSI is below 50, it is increasing as a sign of a neutral trend. However cryptocoin.comWhen we look at it as a whole, there is an uncertain trend for Bitcoin at the moment.
A trap for bulls?
Following the recent recovery in bitcoin price at $24,800, the long-term price action shows that the price is poised for a bullish breakout from the $28,480 high that could reach the 0.618 FIB levels. However, for this, the price must surpass the intermediate resistance levels of the 0.3 and 0.5 FIB levels at $27.008 and $27,746. Even if the bulls push the price beyond these levels, breaking above the critical levels of 0.618 FIB near $28,480 could be a daunting task.
These levels are popular for reversing the trend of BTC price as before. That’s why there is a refusal. On the other hand, an unfilled CME gap will also pull the BTC price rally towards $21,000. But the possibilities of testing lower levels are also quite possible. Currently, Bitcoin continues to trade under the bearish influence as it is still inside the parallel channel since 2021 highs.
Extreme risk for bitcoin
Announcing the crash in the cryptocurrency markets in May 2021, Dave the Wave touches on important points. Dave the Wave says right now is not the time to avoid excessive risk in Bitcoin (BTC). Dave the Wave speaks to his 138,500 Twitter followers, stating that there is no need to be cautious when the price is low.
The analyst points to the top prices to be cautious. This is not the case for Bitcoin at the moment. He also states that being cautious when prices are at the bottom will have the opposite effect. That’s why he emphasizes that the logical move is to buy while the Bitcoin price is low right now.
