Bull Traps Put $BTC Price at Risk of Prolonged Correction – Crypto News – Crypto News
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Bull Traps Put $BTC Price at Risk of Prolonged Correction – Crypto News

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3 years ago

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Published 21 minutes ago

Affected by the massive growth of the 5th largest cryptocurrency XRP, the leading coin Bitcoin witnessed intense buying pressure on July 13th. With a strong bullish candle, the buyers breached the range resistance of $31500, luring awaited buyers for the potential of uptrend continuation. However, the buyers could sustain higher prices which lead to a massive red undermining the bullish thesis. What’s next?

Also Read: Bitcoin (BTC) Set For $35000, Ethereum (ETH) Above $2000 As US CPI Inflation Falls

Bitcoin Price Daily Chart

  • The $31500 level persists as a strong resistance zone for the BTC price.
  • The 20-day EMA dynamic support maintains a high momentum recovery
  • The intraday trading volume in Bitcoin is $17.3 Billion, indicating a 34% loss.

Bitcoin Price AnalysisSource-tradingview

On July 14th, the bitcoin price projected a long red candle that engulfed the buyer’s candle used to break the $13500 barrier. The sellers’ candles destroyed buyers’ weapons of breakout indicating a scenario of a bull trap which may flood more supply pressure as hasty buyers may get liquidated.

Thus, the coin price reenters the range boundaries stretched from $31500 to $29630. The Bitcoin price currently trades at $30461, but with sustained selling it could plunge 2.75% to reach $29630 support.

The price behavior at the aforementioned support would be crucial to check whether the prevailing recovery is intact, or whether BTC could witness a longer correction to $28460.

When BTC Price Can Escape the Sideways Trend?

The fake breakout from $31500 accentuated this level as a high supply zone. On the other hand, if the BTC price showed sustainability above $29630 in the coming days, the coin holders could witness a prolonged sideways trend. Therefore, a genuine breakout from either of the range patterns is needed to determine the near future trend for Bitcoin.

  • Bollinger Bands: The upper and lower band of the BB indicator Aligned with range levels gives extra weightage to them.
  • Moving Average Convergence Divergence: The MACD indicator The slope in a negative crossover state indicates the sellers are actively influencing the Bitcoin price.

From the past 5 years I am working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. Reach out to me at brian(at)coingape.com

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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