Markets
Bitcoin Price Could Fall Into a Trap; Analyst Advises to ‘Be Prepared’
On Crypto Banter’s The Sniper Trading Show, the analyst warned of upcoming market moves like relief bounces and liquidation pool traps, highlighting critical Bitcoin levels like $65,000 and $70,000. Stressing the need to consider longer time frames, he reiterated their bullish stance, noting their commitment since Bitcoin was at $10,000 in 2020 and $33,000 the same year.
The analyst discussed The Fear and Greed Index, which currently stands at 28, explained that this index reflects market sentiment, with lower levels indicating fear and potential buying opportunities, while higher levels suggest greed and higher prices. Referring to historical trends, he pointed out that similar index levels in the past often preceded market rebounds and significant price increases.
Recent developments and critical levels
Moving on to Bitcoin dominance, he noted a slight decline, which could signal a positive trend for altcoins, potentially leading to significant gains if market sentiment turns bullish.
He also discussed the possibility of Bitcoin entering a range or falling into a trap that could liquidate long positions, leading to rapid market activity. He stressed the importance of being prepared for various scenarios in the coming week.
Speculation on futures markets
Explaining the recent market movements, the analyst noted that Bitcoin had recently fallen below a major trendline, indicated by a green candle now positioned below it. He spoke of a critical price area, historically a support level between $60,000 and $61,000, which has now turned to resistance after holding for a long time. This change, he explained, indicates a shift where previous support levels are now acting as barriers to further price increases.
He speculated on potential market moves later in the week, suggesting that if Bitcoin manages to hold above and break above $60,000, it could quickly climb back towards the mid-$60,000 range. He described this scenario as a potential risk for those who exited the market too early, capitalizing on fear and uncertainty.