Bitcoin bear trap. Bears beware trend reversal.
Although Bitcoin had a scary moment today if you look at the overall picture since the strong bullish V-shaped recovery you will see higher lows and higher highs excluding the most recent area that I have highlighted.
And it’s also important to note that when I took the angle measurement tool from the local low, created by the V-shaped recovery candle the trend angle is acting as support in this area that looks like a bear trap.
Since the V-shaped recovery there has only been one strong selling hour, which just happens to have created the area that we are looking at now that I have highlighted and appears to be an area signaling a trend change.
We are seeing higher lows and higher highs and every time Bitcoin has gotten strong volume since recovery we have seen impressive green candles.
This leads me to believe that Bitcoin will revisit the $46,000 zone soon and that what we are witnessing is it sort of range war between bulls and bears.
Typically these trend change areas are filled with short stubby candles with wicks on each side. Notice how the wicks in this chain change area are considerably longer on the bottom. Also notice how during the only strong selling hour since the recovery there is a rather long wick on the bottom of the candle indicating that it was bought back well.
Some other important things to know as I pointed out on the chart:
Bitcoin is trading strong above the 200 dynamic exponential moving average.
The 50 DEMA has crossed over The longer term 200 DEMA.
I believe this was a false breakdown possibly caused by greedy short sellers. At this point the BTC is looking very healthy to me.
We are one strong volume period away from making a nice break out of this zone.
In my opinion on bitcoin has reached a point where short sellers are either too scared to short so they have decided to swing and trade up while a few short sellers are still trying to push the asset down.
I think that this will cause a short squeeze even if we don’t see a super strong volume. Like the one during the V-shaped recovery.
Barring any unforeseen events I do think that bitcoin will reclaim 46,000 in the next week if not sooner and I do believe that we will see a trend change very soon something has to give and the wicks around the bottom make it appear that the price will break up.
And it’s also important to note that when I took the angle measurement tool from the local low, created by the V-shaped recovery candle the trend angle is acting as support in this area that looks like a bear trap.
Since the V-shaped recovery there has only been one strong selling hour, which just happens to have created the area that we are looking at now that I have highlighted and appears to be an area signaling a trend change.
We are seeing higher lows and higher highs and every time Bitcoin has gotten strong volume since recovery we have seen impressive green candles.
This leads me to believe that Bitcoin will revisit the $46,000 zone soon and that what we are witnessing is it sort of range war between bulls and bears.
Typically these trend change areas are filled with short stubby candles with wicks on each side. Notice how the wicks in this chain change area are considerably longer on the bottom. Also notice how during the only strong selling hour since the recovery there is a rather long wick on the bottom of the candle indicating that it was bought back well.
Some other important things to know as I pointed out on the chart:
Bitcoin is trading strong above the 200 dynamic exponential moving average.
The 50 DEMA has crossed over The longer term 200 DEMA.
I believe this was a false breakdown possibly caused by greedy short sellers. At this point the BTC is looking very healthy to me.
We are one strong volume period away from making a nice break out of this zone.
In my opinion on bitcoin has reached a point where short sellers are either too scared to short so they have decided to swing and trade up while a few short sellers are still trying to push the asset down.
I think that this will cause a short squeeze even if we don’t see a super strong volume. Like the one during the V-shaped recovery.
Barring any unforeseen events I do think that bitcoin will reclaim 46,000 in the next week if not sooner and I do believe that we will see a trend change very soon something has to give and the wicks around the bottom make it appear that the price will break up.
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