Bitcoin (BTC) may be struggling to reach $ 50,000, but the latest step may be the “ultimate” bear attraction tool.
In a tweet dated October 5, the popular trader and analyst at Rekt Capital described the latest bitcoin price change as “the ultimate bear trap.”
Analyst predicts more misery for Bitcoin Bears
After Bitcoin hit $ 50,000 for the first time in a month and continued to reach record highs of $ 50,400, Bitcoin once again became a source of intense discussion among market participants.
Whether BTC / USD can contain $ 50,000 – and how much, if not – is the current topic of volatility.
But for Rekt Capital, it is worth taking into account the longer time frames. In particular, the weekly chart of the pair has formed a head and shoulders pattern, which traditionally indicates an impending decline.
This time, judging by the latest data, it will most likely be different.
He summed it up for his Twitter followers: “It looks like the weekly head and shoulders were a real bear trap.”
BTC / USD weekly candlestick (Bitstamp). Source: TradingView
Resistance permeates the senses
In case Bitcoin continues to break out of the price range for several weeks, the next major levels of resistance are approaching the current highs ever.
As reported by Cointelegraph, the outlook for the rest of the fourth quarter of this year and for 2022 is optimistic for many, with expectations indicating that the price of bitcoin will peak in six months or later.
According to the Crypto Fear & Greed Index, emotions that were in “extreme fear” just last week have returned to “greedy” with a return of 50,000 dollars.
Crypto Fear and Greed Index as of October 5th. Source: Alternative.me
For all currencies that have slowed despite the rise in bitcoin, there may be pain first and then rebirth.
“EVERYTHING / USDT looks good. Trader Scott Melker warned on Tuesday that ALT / BTC looks rough. ”
“This usually means that BTC is going to accumulate, pull the ALT / USDT pairs up a bit, but curb them against BTC. At the time, as a trader, I would have been better off with BTC. Not sure at all, but this is a possible scenario. “