- Bitcoin is currently flashing overt signs of power as it consolidates over $11,000
- Bears tried to catalyze a selloff yesterday, however, the past resistance at $10,500 now has turned right into a solid service amount
- Advisors are widely imagining that the cryptocurrency is set to see Additional upside down
- But, 1 dealer is warning against early sadness
- He notes there are a Couple of signs that indicate this motion could be a gigantic “bull trap” that ends at a sharp back motion
Bitcoin along with the aggregated cryptocurrency marketplace have been captured within the throes of an extreme uptrend during the previous few days.
It has come close on the heels of a remarkably tight consolidation period in which BTC exchanged between $9,100 and $9,300 for numerous weeks.
It currently seems that the token may be well-positioned to observe some additional near-term upside, since it has since obtained a solid foothold over $11,000.
Regardless of this, one popular dealer is imagining that Bitcoin’s latest market structure is a prime example of what might be “the biggest bull trap” he’s ever seen.
When supported, this could imply that the cryptocurrency is well-positioned to observe a huge near-term decline.
Bitcoin Consolidates Above $11,000 as Bulls Guard Against Downside
At the time of writing, Bitcoin is currently trading up more than 1% during its present price of $11,100. This is where it’s been merging in the time because it confronted a rejection at $11,400.
Yesterday, bears did step up and try to catalyze a sharp selloff. They finally sent BTC as low as $10,500 until they had been met with extreme buying pressure.
The reverse of $10,500 in a top time framework resistance into a solid service level is a remarkably positive indication for BTC’s mid-term outlook.
One marginally less favorable signal, however, are the skyrocketing funding rates observed throughout margin trading platforms.
As noticed during previous bull markets, financing can remain high for quite a while, but this doesn’t bode well for Bitcoin while it stays inside a consolidation period because of the high expense of keeping long positions.
Can BTC Be Forming a Huge Bull Trap?
One dealer recently mused the chance that Bitcoin’s recent rally beyond $11,000 is merely a huge bull trap.
He clarified the breakout which sent it on a liquidity pool, followed closely by stalling momentum, appears like a grim indication for what comes next.
“This, for BTC, is the best illustration of exactly what I don’t need to see. Looks like the largest bull-trap I’ve ever noticed. An ideal ‘[f***] that your break-out candle’ along with a 1+year triple high liquidity pool. I believe we’re in the process of topping, my green button is disabled for today,” he clarified.
Image Courtesy of SalsaTekila. Chart via TradingView.
Whether Bitcoin can drive higher from here might be quite telling regarding the nation of its own trend.
Featured picture from Unsplash. Charts from TradingView.