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Weekend bull trap? Traders remain cautious as Bitcoin price rebounds to $18K

Weekend bull trap? Traders remain cautious as Bitcoin price rebounds to $18K

The worth of Bitcoin (BTC) surged above $18,000 on Nov. 29, reaching as excessive as $18,209 on Binance. Nonetheless, merchants are turning cautious regardless of BTC’s weekend rally.

Bitcoin presently faces resistance at round $18,200, which can be the 10-day shifting common (MA) on the day by day chart. As Cointelegraph reported yesterday, some merchants nonetheless anticipate BTC to see one other drop within the close to time period earlier than the rally can proceed.

BTC/USDT 4-hour chart (Binance). Supply: TradingView.com

Why a bull lure for Bitcoin now?

A pseudonymous dealer referred to as “Crypto Capo” predicted Bitcoin would see a reduction rally to $18,000 because it dropped to the $16,000 area.

On Nov. 27, when the worth of Bitcoin was nonetheless hovering at round $16,700, the dealer mentioned he is able to brief $18,000.

He added that he’s now beginning to hedge at $18,100 with plans to chop the hedge if the development reverses. Within the close to time period, the dealer famous that the primary affirmation of a correction can be a drop to $17,400. He mentioned:

“Beginning to construct a hedge place. I do not wish to promote some alts luggage as a result of the entry was excellent, so hedge is a greater choice right here. Invalidation for the hedge is evident.”

If Bitcoin continues to drop beneath $17,400 and finally $16,800, the dealer mentioned a drop to the $14,000 area would turn into probably.

However, if Bitcoin rises above $18,400 and consolidates at round $18,200, that will invalidate the bearish construction. Crypto Capo additionally famous that consolidation above $19,000 would utterly invalidate the bearish setup.

Potential Bitcoin bearish and bullish situations. Supply: Crypto Capo

One other pseudonymous dealer referred to as “Loma,” who mentioned a bullish construction for Bitcoin at $17,500, mentioned he has lower half of his lengthy place.

The dealer emphasised that BTC is nearing resistance because it appears to be like to shut its weekly and month-to-month candles. Contemplating that the $18,200-$18,400 space stays a resistance vary, the dealer mentioned:

“Closed half of lengthy at $18,080~ Not trying to be too overexposed into resistance coming into the weekly m/month-to-month closes. Plenty of shopping for alternatives if we do break $18.4~ Not quite a lot of promoting alternatives if we don’t.”

There’s a counter bullish situation for BTC

A technical analyst referred to as “CryptoBirb” mentioned that Bitcoin usually faces two kinds of correction: 15% and 30%.

The analyst mentioned that he expects a pullback to $14,000, but in addition famous that this isn’t assured. He pinpointed numerous technical indicators, together with BTC being in oversold territory for the primary time because the rally started. He wrote:

“There are two main $BTC correction varieties: -15% & -30% declines. Whereas anticipating~14okay area, I seen it is the primary return to the imply and first oversold bullish momentum cross because the rally began – VERY robust sign. Would not thoughts ATH earlier than Christmas. Who’s with me.”

The bullish situation for Bitcoin would nonetheless require BTC reclaiming $18,400 and consolidating above it to verify the brand new help ranges. 

Well-liked dealer filbfilb, in the meantime, mentioned that he’s presently in money as market uncertainty is asking for elevated danger administration.

“Within the occasion of a breakdown beneath $15Okay and a flip of earlier help into resistance, that will current an easy brief alternative,” he wrote on Sunday in his weekly publication.