Bitcoin Bull Trap: BTC Price Still At Risk of Dropping 20% in Coming Days!!
Analyst Kyledoops recently talked about
#Bitcoin’s crucial position is below $60,000 and the importance of the $58,000 to $60,000 range. He warned viewers about a possible trap in the market and shared tips to avoid it.
He noticed a bit of relief in the market, with many top coins bouncing back on hourly and daily charts. Altcoins were doing better than Bitcoin, with some even making big gains.
“Where are we within the cycle? We’ve spoken a lot about the diminishing volume which tends to happen in a corrective phase. Now, I give a slight edge to the Bulls just to give you full disclosure over there. I am very, very, very cautiously on a fine line on thin ice bullish, right? But that ice is cracking and we’re about to fall through,” he said.
However, the bullish edge was hanging by a thread, with the potential for a major bear trap if Bitcoin closes above $60,000. The Analyst highlighted the significance of the 21 exponential moving average on the weekly timeframe and cautioned against losing it as it could signal a deviation back into the old trading range. Despite hitting those levels, there was historical precedence for a rebound, especially between the 100 and 150-day moving averages within the bull market.
While there might be short-term spikes, the overall trend remains bullish, though correction phases can last up to 8 to 12 weeks with drawdowns of 20 to 40%. Bitcoin has seen a 23% drop, with a potential further decline to around $44,000. However, any such move is expected to be brief, with a swift rebound anticipated.
The analyst added, “If the weekly candle starts to close above $60,000, well, you can see very quickly how a major bear trap would have unfolded over there. So currently we’re putting in a little bit of a wick.”
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Bitcoin and a handful of altcoins were down around 7%-10% over the last 24 hours. Here are several factors:
1. Several macro data is being released this week and had investors spooked. Particularly, there is a declining probability of US interest rate cuts this month, and rumors of possible rate hike considerations
2. Over the last 24 hours, 115,804 traders were liquidated for a whopping $387.91m.
3. US Spot BTC ETFs saw an outflow of $161m yesterday
4. Hong Kong’s Bitcoin and Ether ETFs failed to meet expectations
5. RSI divergence indicators suggest a bearish trend, as it was in the "overbought" area during the US BTC ETFs launch
6. More BTC miners approach shutdown levels amid price drop below $57,000
It is important to note that during the 2015-2017 bull market, over 13 different 20% pullbacks occured. Price swings are quite normal and sometimes good for the markets.
Tron CEO Justin Sun Supports Meme Coins at Token 2049 Conference
-Justin Sun backs meme coins like Dogecoin, Shiba Inu, and Floki, praising their role in diversifying crypto.
-Sun emphasizes community involvement and fair launches as key to meme coins’ success.
-Despite recent price declines, Sun remains optimistic about meme coins’ future, citing their resilience in crypto cycles.
Justin Sun, the founder and CEO of Tron, expressed support for meme coins such as Dogecoin, Shiba Inu, and Floki at the recent Token 2049 conference in Dubai. Sun highlighted the unique role these tokens play in differentiating the cryptocurrency industry from traditional financial systems.
During his address, Sun discussed the substantial market valuations attained by top meme coins, which exceed $10 billion. However, Sun emphasized that such success stems from “fair launch and community participation,” core principles that he believes are vital to the cryptocurrency ecosystem.
Network Upgrades and Market Trends
Sun also touched upon the challenges of launching a successful meme coin, comparing it to creating any significant crypto project. He cited the consistent support from figures like Tesla CEO Elon Musk for Dogecoin, underscoring the importance of prominent endorsements in the crypto world.
Moreover, Sun’s speech included an optimistic outlook for the future of meme coins. He noted that each bull cycle in the cryptocurrency market tends to highlight a particular meme coin that stands out from the rest. Despite the recent downturns in market prices, with Dogecoin and Shiba Inu experiencing significant declines, Sun’s perspective remains bullish on the potential resurgence in the next cycle.
Shiba Inu Community Burns 1.69 Billion Coins in April
Shiba Inu community removed 1.69 billion SHIB coins from circulation in April to increase token value through scarcity.
Despite substantial coin burn, SHIB’s price falls 22.44% in April, reflecting a broader market downtrend.
The upcoming hard fork on May 2nd offers hope for SHIB investors and is expected to enhance token functionality.
Shiba Inu’s community has made headlines in the cryptocurrency sector by successfully removing 1.69 billion SHIB coins from circulation through a series of transactions in April. This action is part of an ongoing effort to reduce the supply and potentially increase the token’s value.
Throughout the month, 204 transactions were used to send these tokens to dead addresses, permanently removing them from the supply. The burning mechanism is a common strategy within the cryptocurrency space aimed at creating scarcity, giving the remaining coins the potential for increased value. For Shiba Inu, these burns are critical to its economic strategy.
Shibburn tracker, however, explained that this was not part of any larger plan. “It’s just folks making mistakes, sending their tokens to the CA, and losing their investments as a result,” the tracker noted in a post on X.
Market Reaction
Despite the substantial coin burn, Shiba Inu’s price has experienced a downturn, falling by 26.84% over the month. This decline reflects a broader market trend that has seen many cryptocurrencies lose value. Market analysts suggest that while the burn could foster scarcity, larger market forces have overshadowed the immediate impact on price.
Decreasing supply is a long-term strategy to boost the token’s value. Moreover, the Shiba Inu community is optimistic about the future, with a hard fork scheduled for tomorrow. This upgrade is expected to introduce improvements that could enhance the token’s functionality and appeal to a broader audience.
Today, the cryptocurrency market is experiencing a downturn as traders evaluate how the Depository Trust Company's decision to exclude Bitcoin ETFs from collateral recognition will affect price.
The cryptocurrency market is down today, with the total market capitalization falling by 2.82% to $2.23 trillion on April 29. Bitcoin $BTC $62,640 , the largest cryptocurrency by market capitalization, has fallen 1.84% to around $61,940. Meanwhile, Ether ETH $3,168 ,the second-largest crypto, has underperformed Bitcoin and the rest of the market, dipping 3.28% to trade around $3,155 on the same day.
Need to read full story click on link https://cointelegraph.com/news/why-is-the-crypto-market-down-today