The post Is Bitcoin Forming a Bullish Trap? Is BTC Price Primed to Head Back to $50,000? Here’s What You Need to Know appeared first on Coinpedia Fintech News
The crypto markets have become optimistic, with the Bitcoin price rising above $62,000 after a dreadful start to the week. Moreover, market participants now expect the price to rise above $70,000. Unfortunately, the start token is speculated to display a fake bullish divergence for a specific reason, which may end up in a massive collapse. The crypto winters that had advanced by a couple of months are expected to get stronger in the next few months.
The BTC price faced a decent recovery of over 12% in the past trading day, which is speculated to be one of the largest ones. Although the sentiments have changed in favour of the bulls, the technicals suggest more downfall could be following as the bears remain more vigilant. Therefore, the price that has entered one of the most pivotal ranges may face rejection, resulting in a severe price crash, probably over 50%.
A popular analyst, Xanrox, continues to remain bearish on Bitcoin regardless of the interim bullish action. He believes the token is primed for a 50% crash, which may cause the price to drop below $30,000 soon.
Considering the above chart, the analyst says that crypto is heading for a 10 to 20-year bear market. The crypto markets move in waves as nothing goes up in a straight line. Bitcoin has finished the major impulse wave and a massive sell could be following the run. While the markets crashed, the analyst predicted the token to slump below $30,000 and now that the price has triggered a recovery, the bearish prediction remains intact.
The analyst believes the crypto is trading within a fake bullish flag and hence the price is expected to form consecutive lower lows and eventually breach the support of the fake bullish flag initially and later the ascending channel, which it has held for a long time. During the past weekend, the BTC price has formed a CME gap between $59,500 and $62,000 and hence it is believed that the recent downfall was to fill in the gap.
Therefore, the analyst believes that the Bitcoin (BTC) price is poised to drop back below $50,000 and hence cautions the market participants about the last chance to sell before triggering a fresh bearish action.
