Is The Recent Bitcoin Price Action a Bull Trap?
Since bitcoin reached its peak in early January we’ve been trending downwards. So far $6,000 has been the line in the sand.
Then on Sunday we broke $6,000 and reached a low of $5,755.
So I was surprised on Monday to see we were already above 6k again. And it has me wondering if the current move is a bull trap.
So what’s a bull trap?
In trading, a bull trap is an inaccurate signal that shows a decreasing trend reversing and heading upwards, only to head back downwards and continue the decline.
If it plays out in bitcoin we may see a rally taking us back possibly to the $6,800 area again, before turning and heading decisively below $6,000.
A lot depends on if all the weak hands have been shaken out. If they haven’t, then yes we’re likely going lower.
We are, after all, still up around 140% from this time last year. That’s an excellent return in anyone’s books.
And the fact we broke $6,000 is not a good sign. Generally once support is broken, it becomes future resistance.
On the other hand, bitcoin broke $6,000 on some of the lowest volume of the year. It may not have much follow through.
Regardless if bitcoin goes lower or not, I’m still bullish on bitcoin and cryptocurrency space.
And I still think institutional money will give a big boost to the space.
What do you think? Is bitcoin headed lower or is the low already in place?
and trade cryptos on Binance
Time will reveal the truth! Just wait and see
I agree with you in general...I have to recognise that the current low volume is not putting the things easy for the crypto analyst, nonetheless, since I like to be positive always so I bet for an upwards move in the coming hours. Nothing explosive but positive:
https://steemit.com/bitcoin/@toofasteddie/bitcoin-small-inverted-head-and-shoulders-pattern
Cheers
I think it will reach the bottom area of 4000-4500$ and after that it will have a slight bull run until the end of the year reach 10.000$
Crazy that 10k could be a disappointing number... but I'll take it.
My take on things also @ninegags!
To the question in your title, my Magic 8-Ball says:
Hi! I'm a bot, and this answer was posted automatically. Check this post out for more information.
Lol the bot is probably right.
50/50 no one knows 100 percent for sure. I personally think it will go up and then drop below $6K.
It is hard to tell I am just increasing my position on steemit and hodling
Good idea, dollar cost averaging the way to go.
How are you doing? hodling steem and BTC?
Yes, BTC, ETH, BNB, STEEM, and NEO my top 5.
All prices are in a very low state
Really great price offer
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Don't see any reason for it to hike any higher, institutional money seems to be looking at other more technologically-relevant coins and Bitcoin failed, in my eyes, to become the payment tunnel we dreamed of, virtually every shitcoin prides itself with the "future money" feathers because the competition is wide open and it's plausible that solutions will be built for people to be able to seamlessly convert one obscure coin (that they happen to have use of) to another one, for instant payment.
Actually I think it's a much more probable scenario than a single coin becoming the next dollar.
it will go moon soon
I'm thinking it may be a bull trap. However, I think we are getting close to the bottom. The cure for low prices...low prices.