#美国大选后行情预测 Explanation of False Breakout (Bull Trap)!
This week is still long, it's not over. Last week, Bitcoin peaked at 69,586 and finally closed at 68,035. Compared to the week of July 29, which saw a significant drop until it recovered on August 5, this week's high is much lower. Everyone is still bearish because the price is hovering below the 'resistance level'.
At the beginning of this week, Bitcoin broke through the resistance level, and everyone suddenly became very bullish, thinking that a price 'above the resistance level' is a good thing. But this is not safe; after all, the week has just started, and we need to wait until the week is over to count. Bitcoin might just break through the resistance level in these days and then suddenly drop again, which is exactly the situation now.
The week is not over yet; today is only Friday. If Bitcoin drops further and closes below 68,035, there will be a long upper shadow and a red candle, which will become a classic bull trap, also known as a false breakout. This kind of movement deceives traders into thinking the market is about to rise, but in fact, it may drop further. Once traders buy at the high, those big players (whales) can sell, and that's the trap, the movement comes to an end.
That being said, the week is still not over, and the outcome is still uncertain.
If the price drops and closes below 70K, that would be a bull trap, and the bear market would return. If the price rises and closes above 74K, the situation might be a bit better, but it's still hanging in the balance. Regardless of how high the price goes, Bitcoin will still hover near the high. The high is the least suitable place for long positions.
Let's give the market some time to develop on its own. I am currently watching both sides, but the most likely scenario is still bearish. Why? Because many altcoins are falling; when Bitcoin rises, they usually rise along with it.
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