Bitcoin price rallied back to $ 18,000, but traders remain wary of a possible bull trap.
The price of Bitcoin (BTC) surpassed $ 18,000 on November, reaching $ 18,209 on Binance. However, traders are cautious despite the rally in Bitcoin’s price.
Bitcoin price is currently facing resistance around $ 18,500, which is also the 10-day moving average (MA) on the daily chart. Some traders still foresee that BTC will have another short-term dip before the rally continues. According to Coinmarketcap, the market capitalization of Bitcoin is $ 338,145,038,630.
A Bullish Trap for Bitcoin price now? How could that be?
A trader with the name of”Crypto Capo” predicted that the price of Bitcoin would show a relief rally to $ 18,000 when it fell to the region of $ 16,000. On November 27, when the price of Bitcoin was still around $ 16,700, the trader said he was willing to short $ 18,000.
He also claimed that he is now beginning to shield up at $ 18,100 with plans to shorten the hedge in case the trend suffers a reversion. In the short term, the trader noted that the first confirmation of a correction would be a drop to $ 17,400. He Said:
“Starting to build a hedge position. I don’t want to sell some altcoins because the entry was very good, so hedging is a better option here. Hedging invalidation is clear.”
If Bitcoin continues its fall below $ 17,400 to later hit $ 16,800, the trader said that a drop to the $ 14,000 region would turn into a benefit.
But, if Bitcoin breaks above $ 18,400 and consolidates around $ 18,200, that would invalidate the bearish structure. Crypto Capo also recognized that a consolidation above $ 19,000 would completely invalidate the bearish structure.
An anti-bullish scenario for BTC, where is the optimism?
A technical analyst named “CryptoBirb” said that Bitcoin faces two types of corrections: 15% and 30%. The analyst said he awaits a reduction to $14,000 but also recognized that there is no guarantee for this to happen.
He pointed out several technical measures and indicators; those include the fact that Bitcoin price is in oversold territory for the first time since the rally began. He Wrote:
“There are two types of major corrections for Bitcoin price: -15% and -30% decline. Anticipating a 14,000 region, I noticed that it is the first return to the mean and the first oversold bullish momentum crossover since the start of the rebound, it’s a VERY strong sign. I wouldn’t be surprised by an all-time high before Christmas. Who’s with me? “.
The optimistic scenario for the price of Bitcoin happens to still require BTC to claim the $ 18,400 and consolidate above so it can confirm and consolidate the new support levels.
Popular trader filbfilb, meanwhile, said that it is currently opting for cash as market unreliability requires way more risk management. He wrote in his weekly newsletter Sunday that:“A break below $ 15,000 and a change from pre-resistance support may present a direct short-term opportunity”, he wrote in his weekly newsletter Sunday.
By: Jenson Nuñez.
