Bitcoin price this week pushed up aggressively toward $20k. However, many industries still think BTC is due for a correction. Experts also think that bearish institutional traders might set a trap for unsuspecting retail traders.
The word of the week is “Bear Trap.” Let’s dive in.
Previous Analysis
Bitcoin last week showed promising signs of moving up higher, leading us to give a bullish verdict. However, from last week’s price of $19,977, BTC is trading at $19,736, indicating massive consolidation.
From last week Friday, Bitcoin descended lower and even left a wick below the $18,433 (strong) support level. It was a horrifying moment for the markets as everyone entered panic, anticipating the asset’s collapse.
However, Bitcoin managed to close the day (October 13, 2022) above this crucial support zone – much to the relief of all crypto traders.
Bitcoin Next Week
Despite this relatively good news (of strong support), last week’s price actions brought Bitcoin near the end of a bearish market structure: A descending triangle.
Descending triangles can form from any price trend direction. Moreover, break out can be in either direction. However, it usually breaks downward 63% of the time. Bitcoin is currently at the end of a descending triangle and might soon be up for a heavy move.
The market might be in for a bad surprise this coming week as Bitcoin must pick a direction soon – and it seems it might be a bearish side.
Although the article might be filled with instances of ‘bearish,’ ‘downward,’ ‘bad surprise,’ and ‘bear trap,’ in today’s analysis, we shall refrain from making a verdict as BTC is at a crucial decision zone. This is the best time to stay out of the market until the asset makes a definitive move in one direction.