đš Is the Bitcoin Bear Trap Over? A Parabolic Move Could Be Next
đ Bear Trap or Shake-Out?
A bear trap typically occurs during a strong uptrend, where a sudden, sharp correction scares off weaker hands before the price resumes its upward trajectory. The recent 25% dip in Bitcoinâs price might have been just thatâa shake-out designed to flush out overly leveraged positions. According to crypto analyst Sensei, this could be the case, as he highlighted in a recent post.
Fractal Patterns Signal a Shift:
Fractal patterns, which traders use to predict key levels and trend reversals, are now pointing to a potential parabolic phase for Bitcoin. Sensei noted these fractals in his analysis, suggesting that the worst might be over, and Bitcoin could soon see a sharp move upward.
The $62,000 Resistance:
However, Bitcoin isn't out of the woods yet. The next critical resistance lies at $62,000. Breaking this level is crucialânot just for reaching new highs, but also for triggering a liquidation of over $845 million in leveraged short positions, as per CoinGlass data. If Bitcoin can push past this threshold, the path to $70,000 and beyond might become clearer.
A Possible Trend Reversal:
Despite these bullish signals, some analysts remain cautious. Aurelie Barthere from Nansen points out that Bitcoin's daily trend still leans negative, with the 50-day moving average nearing a cross below the 200-day moving averageâa classic bearish indicator. Yet, if Bitcoin can maintain momentum and break the $62,000 resistance, the narrative could shift dramatically.
Conclusion - Prepare for Volatility:
As Bitcoin hovers around critical resistance levels, the coming days could be pivotal. Traders should brace for volatility, but with the potential for significant gains if Bitcoin breaks through key barriers. Whether this is truly the end of the bear trap or just another shake-out, having a plan in place is essential!
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