Bitcoin (BTC) may be fighting at the $50,000 level, but its latest move could prove to be the “ultimate” tool to make the bears pay.
On a tweet on Oct. 5, popular trader and analyst Rekt Capital described the latest BTC price action as the “last bear trap”.
Analyst predicts more suffering for Bitcoin bears
After hitting $50,000 for the first time in a month and hitting highs of $50,400, Bitcoin is once again the source of intense debate among market players.
Whether the BTC/USD can hold the $50,000 – and how far it might fall if not – is the topic of the day, as volatility continues.
For Rekt Capital, however, it is in the longer terms that it is worth paying more attention. Specifically, the weekly chart for the pair has formed a head and shoulders pattern – something that traditionally suggests new downsides to come.
This time, based on the most recent show of strength, it’s probably different.
“Looks like that weekly head-and-shoulders was the ultimate bear trap,” he summed up his Twitter followers.
Optimism is the feeling that permeates the air
If Bitcoin continues to climb out of its multi-week price range, the next major resistance levels are closer to current highs.
As reported by Cointelegraph, the outlook for the remainder of this year’s fourth quarter and 2022 is optimistic for many, with expectations that a peak BTC price will be reached in six months or later.
This is a great time to sell Bitcoin if you want to buy back more expensively!
– Ryan Cantering Clark (@CanteringClark) October 4, 2021
The sentiment, which last week was “extreme fear”, has returned to “greed” with the return of $50,000, according to the Crypto Fear & Greed Index.
For altcoins, which have slowed down despite Bitcoin’s rise, the pain may come first, before a later rebirth.
“The ALT/USDT pairs look good. ALT/BTC pairs look difficult”, warned trader Scott Melker on Tuesday.
“Usually it means the BTC is about to rally, dragging the ALT/USDT pairs a bit, but crushing them against the BTC. Better to be at BTC as a trader at these times. It’s not a sure scenario, but a likely one.”
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