Can Bitcoin Price Recover Above $70,000?
Bitcoin is currently on a recovery path, i.e. the price drop over the past two days is more appropriately described as a bear trap. Given the recent movement, Bitcoin price remains bullish in nature.
Bitcoin was able to form a broad bullish D1 candlestick (technical indicator) close to its highs last weekend. Now, the characteristic of broad D1 candlesticks is that they are used to measure buying pressure. Given that the candlestick closed near Bitcoin’s highs on Friday, it means that the price was pushed higher due to strong and sustained buying pressure on BTC.
Moreover, the candlestick also broke Bitcoin’s previous “Inside Bar Pattern”. This is almost exactly the same as the D1 candlestick closing at a high, which means that the buying pressure on the digital asset has been sustained.
As the price surged, Bitcoin has held above $60,000, which is an important psychological level. Breaking through the $60,000 level is positive for the coin, which reinforces Fawley’s sentiment that the price drop was a false breakout. In other words, the drop was a bear trap.
For those who are not familiar, a bear trap is when prices plummet after a period of price recovery, convincing investors that prices have peaked. This attracts more bears, who continue to short the price, believing that it will continue to fall, but eventually the price resumes its upward trajectory. Since the BTC price drop has been identified as a bear trap, it means that the price of the cryptocurrency is expected to continue to climb to new all-time highs.
The future Bitcoin price was analyzed with a focus on the 4-hour chart. In this chart, it is confirmed that Bitcoin has formed a V-shaped pattern due to strong buying pressure at the bottom. The coin has broken through the descending trendline resistance. Meanwhile, Bitcoin price is forming an accumulation area near its recent highs of around $64,000.
If Bitcoin “can break through this price high and the PPZ area, then Bitcoin H4 will resume to an uptrend structure on the H4 timeframe.” After a sharp rise in the early hours of Tuesday, the current BTC price remains above $63,300.This confirms that buying pressure remains strong. "Friday's false breakout created a bear trap that continued into Saturday and Sunday, suggesting that Bitcoin D1 is strengthening."
