Looking at this morning's charts, I sat and watched as BTC started pushing towards new 24 hour highs.

This type of performance can be deceptive. Popular crypto sites like CMC often only list the last 24 hours of price movement by default. This automatically places such price movements into the green and makes the overall performance of the crypto look good, since there is no longer-term figure displayed.

The problem compounds when this happens over time periods of more than a day. If a crypto can make a few gains within a week, even if it is still in a long-term price drop phase, then it will appear green on the 7 day charts too.

Caution: Bull Traps

While I was impressed to see BTC climbing this morning, I know that it will probably not last long. Don't make the mistake of buying under such circumstances and getting yourself caught in a bull trap.

Look at the chart below, I have indicated the short-term trend (long red line). I've confirmed it by highlighting the very short-term BTC price movements in the same direction (short red lines). These occur during periods of low volatility and often mimic the direction of the general trend. The potential bull trap is indicated as a green arrow.

Made by Bit Brain with TradingView

If the green arrow were to breakout above the level of the descending red line, then I would be interested and I would reassess the situation, but for now I'm just continuing to wait for BTC to drop to $3200 or below. To see why I say $3200 or below you should read the post I wrote yesterday about long-term BTC price patterns: https://steemit.com/cryptocurrency/@bitbrain/analysis-of-long-term-btc-patterns

Yours in crypto,
Bit Brain

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by Bit Brain

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