Bitcoin (BTC) price exceeded $ 18,000 on November 29 and reached $ 18,209 on Binance. However, traders are concerned despite Bitcoin’s rally over the weekend.
Bitcoin is currently facing resistance at around $ 18,200, which is also the 10-day moving average (MA) on the daily chart. As Cointelegraph reported yesterday, some traders still expect Bitcoin to see another drop in the short term before the rally continues.
Why is Bitcoin put into a bull trap now?
An anonymous trader known as “Crypto Capo” has predicted that Bitcoin will see a relief of up to $ 18,000 as it drops into the $ 16,000 region.
On November 27, when the bitcoin price was still around $ 16,700, the trader said he was willing to cut $ 18,000.
He added that he has now started offering $ 18,100 with plans to cut hedging if the trend reverses. In the short term, the trader noted that the first confirmation of a correction would be a drop to $ 17,400. He said:
“Start setting up a hedge position. I don’t want to sell replacement bags because the ad was too good, so it’s better to secure them here. The wick is clearly out of order.”
If bitcoin continues to fall below $ 17,400 and ultimately $ 16,800, the trader said a drop to $ 14,000 is possible.
But if Bitcoin rose above $ 18,400 and consolidated to around $ 18,200, it would cancel the bearish structure. Crypto Capo also indicated that a consolidation above $ 19,000 would completely reverse the downtrend.
Another trader under a pseudonym known as Loma, who discussed the bullish structure of Bitcoin at $ 17,500, said it had cut half its long position.
The trader confirmed that Bitcoin is nearing resistance as it appears to be closing the weekly and monthly indices. Given that the $ 18200-18400 range is still a resistance range, the trader said:
The half buy closed at $ 18,080 ~ not much affected by the weekly and monthly closing resistance. Lots of buying opportunities if we break $ 18.4 ~ Not a lot of opportunities to sell if we don’t. ”
This is a counter exchange scenario for BTC
CryptoBirb, a technical analyst, said Bitcoin typically faces two types of recoveries: 15% and 30%.
The analyst said he expected a $ 14,000 refund, but also indicated that this was not guaranteed. He pointed to several technical indicators, including Bitcoin, that were sold into oversold territory for the first time since the rally. he wrote:
There are two main types of the $ BTC retracement: -15% and -30%. When I projected the ~ 14k area, I noticed that this is the first return to the average and the first intersection of a bullish oversold pulse since the rally started – a very strong signal. Wouldn’t mind ATH before Christmas. Who is with me? ”
Bitcoin’s bullish scenario will still require BTC to return $ 18,400 and consolidate above it to confirm new support levels.
Meanwhile, renowned trader filbfilb said he is currently trading cash because market security requires increased risk management.
“In the event of a breakdown of less than $ 15,000 and a reversal of previous support into resistance, this could be a very short opportunity,” he wrote in his weekly newsletter on Sunday.