Bitcoin was trading at its long-term support level during the prior day’s session, while the crypto markets continued to fall.
This week, the price of bitcoin has dropped even further after a brief dip to $43,000 at the start of the week. As a result, unless Bitcoin price action can clearly rebound above $42,000, the current local high.
On the flip side there could be further fall next week. The $44,000 level would be the next obvious target, since it has historically provided both support and resistance.
Will the Bitcoin Rally be a Trap?
Bitcoin bulls should beware, according to a well-known crypto analyst, because BTC will likely trap market players who buy the next rally.
Cheds, a pseudonymous trader with 45,100 YouTube followers, says that Bitcoin bears are now in control and that any bounce is an opportunity to short sell BTC in a new strategy session.
Cheds also discusses why the next rally will most likely be a trap rather than a trend reversal. Bitcoin’s recent dip below $45,000, according to the crypto analyst, is a significant red flag for bulls.
Bitcoin was tested at a key level ($45,000). It developed over time as a result of time intervals, time between efforts, and different sites. There was a pause and an invalidation. That’s a very awful omen.
Not that the stock’s RSI is oversold, or that random Elliott Wave, or any one-hour head and shoulders, but it has to be the starting point of any research. Just concentrate on momentum and crucial levels, he advises.
Despite a roughly 40% drop since November’s record high, Bitcoin has more than quadrupled in value since before the outbreak. BTC is currently trading at the $43,246 level. In the last seven days, it has lost 7% of its value.
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