Don’t be too happy about Bitcoin’s rise?
According to data from CoinGecko, the price of Bitcoin ($BTC) has increased by 0.3% in the past day, and has risen by 11% since Monday (14th). As of the time of writing, it was $67,562. Compared with the sluggish trend in previous weeks, it seems that Already we are seeing signs of recovery.
Image source: CoinGecko Bitcoin price chart for the week
Judging from the current trend, the price of Bitcoin is above the 50-day and 200-day moving averages, showing that it has the necessary power to rise in both the short and long term. The relative strength index (RSI) is also close to the overbought zone. Investors As Bitcoin is eagerly awaiting to break through $70,000, the overall market sentiment is beginning to be bullish.
However, cryptocurrency analyst Alan Santana recently issued a warning, reminding everyone that this rise is likely to be just a "bull market trap" and that the real crash is approaching.
Is it a real rise or a bull market trap?
In a TradingView article published on October 16, Alan Santana put forward a view contrary to the current bullish sentiment. He pointed out that Bitcoin’s rise is more like a “deceptive rebound” that may make investors mistakenly believe that the market is about to rise sharply. , but in fact after a short rebound, the market will usher in a more severe correction: "This is not a bull market surge, but a reverse correction. Bitcoin is on the edge of falling, this is a bull market trap."
Image Source: Bitcoin Price Analysis by TradingView Alan Santana
Alan Santana compared the trend of Bitcoin since August this year with the bullish trend in January this year. He emphasized that the current market structure shows signs of weakness with "continuously falling highs and gradually falling lows" and lacks a bull market. There should be a situation where "each pullback low is higher than the previous one".
Could Bitcoin hit $39,000?
Alan Santana further pointed out in the article that the next step for Bitcoin may be a sharp decline, with the worst return to around $39,000, or even a lower price. He emphasized that investors should be cautious in the next step. Stay cautious for a few weeks in case the market experiences an unexpected correction.
From a technical analysis perspective, Bitcoin is currently in the classic "symmetrical triangle pattern." After this pattern ends, it may break out in either direction. If Bitcoin can maintain its current momentum and break upward, then the price is expected to further rose, pushing towards a new all-time high of $88,000.
Image Source: Bitcoin Price Analysis by TradingView Alan Santana
However, to achieve such a goal, the market needs to maintain a stable upward momentum. If Bitcoin fails to break through upward, the "symmetrical triangle pattern" is likely to drag the price of Bitcoin downward.
Although the market may be volatile in the short term, it does not prevent Bitcoin from being bullish in the long term. Analysts at Standard Chartered Bank have predicted that Bitcoin may exceed $150,000 by the end of 2024, especially as the U.S. election approaches and if the cryptocurrency-friendly Republican candidate Trump is elected as the U.S. president, Bitcoin will The price of the currency will undoubtedly see greater room for growth.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
