Bitcoin price continued its rally by rising over the weekend. Analysts are sending mixed messages on the Bitcoin Bull Trap scenario.
Bitcoin price may experience bull trap fears
Analyst and trader ‘il Capo of Crypto’ said that recent market movements appear to have been manipulated without any real demand. “The biggest bull trap I’ve ever seen,” he declared over the weekend.
With the struggling global economy, an impending recession, and little disposable income to invest in risky asset classes, it seems a little early to call it a bull market. However, with patterns like these appearing on Tradingview, there seems to be more sentiment heading towards the bull trap scenario. BitcoinAgile and IncomeSharks have republished the market psychology chart that emerges in every bear market.
https://twitter.com/100trillionUSD/status/1617297752362287107
The bulls responded by observing how much prices moved from the bottom. The statement said, ‘When the price drops 50% below the bottom, it’s no longer a bull trap, it’s a move you missed.’ it said. Popular analyst and chart guru ‘PlanB’ remains confident that the bear market is over.
Bitcoin dominance reaches red resistance
Crypto analyst Michaël van de Poppe said that the overall market cap crossing the 200-Day EMA is a positive sign for crypto and a sign that the market could continue to recover up to $25,000 or experience a corrective pullback to $19,500.
Analyst Rekt Capital said that Bitcoin’s dominance has reached red resistance, stretching it a little too far on the one-day chart. This has led to some altcoin exits, but Bitcoin dominance may be retesting the red right now.
#BTC Dominance has reached red resistance & even slightly overextended it
On the 1D, $BTC DOM is briefly dipping which has helped Altcoin breakouts
But BTC Dominance may be retesting red right now, which would enable an increase in BTC.D in the coming days#Crypto #Bitcoin pic.twitter.com/qzNqbmN5u9
— Rekt Capital (@rektcapital) January 22, 2023
Crypto Kaleo, another pseudonymous analyst, predicts that the upcoming breakout will be similar to the one that occurred in March or April 2019 after a long-term trend breakout. The chart he shared shows several days of low range trading above the breakout level followed by a bounce to around $30,000.
The real BTC movement is yet to come
The popular analyst, who correctly named Bitcoin’s rally this month, says that BTC still has more upside potential, despite its nearly 38% year-to-date increase. Analyst DonAlt told his 456,500 Twitter followers that towards the end of this month, BTC could see a fresh flow of capital from high timeframe (HTF) investors.
Looking at the traders’ chart, a monthly close above $20,000 is a high timeframe bullish for Bitcoin. If BTC ends the month on a bullish note, DonAlt’s first higher timeframe resistances are first around $35,000 and then around $58,800. As we stated as Kriptokoin.com, BTC is changing hands at $ 22,795. According to DonAlt, Bitcoin will continue to recover until the bears stop selling to Bitcoin.
The crypto strategist also points out that Bitcoin’s current rise above $20,000 is similar to BTC’s peak at $69,000. DonAlt says that in both cases, Bitcoin prints false breakout setups.
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