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Bitcoin price could fall into a trap; analyst advises: “Be prepared”

Bitcoin price could fall into a trap; analyst advises: “Be prepared”
Bitcoin price could fall into a trap; analyst advises: “Be prepared”

Speaking on Crypto Banter’s Sniper Trading Show, the analyst warned of upcoming market moves such as recovery bounces and falls in liquidation pools, pointing to critical Bitcoin levels such as $65,000 and $70,000. He stressed the need to consider longer time frames and reiterated their bullish stance, citing their exposure as Bitcoin was at $10,000 in 2020 and $33,000 in the same year.

The analyst discussed the Fear and Greed Index, noting that it currently stands at 28. He explained how this index reflects market sentiment, with lower readings indicating fear and potential buying opportunities, while higher readings indicate greed and higher prices. Referring to historical patterns, he pointed out that similarly low index readings have often preceded market rallies and significant price increases in the past.

Current developments and critical limits

As for Bitcoin’s dominance, he noted a slight decline, which could be a sign of a positive trend in altcoins and can potentially lead to significant gains if market sentiment turns optimistic.

He also discussed the possibility of Bitcoin entering a range or falling into a trap that could liquidate long positions, leading to rapid market activity. He stressed the importance of being prepared for different scenarios in the coming week.

Speculation about future markets

Explaining the recent market movements, the analyst noted that Bitcoin recently fell below a key trend line, indicated by a green candlestick that is now below it. He spoke of a critical price zone, historically a support level at $60,000-$61,000, that has now become resistance after a long period of holding. This shift, he explained, indicates a change where previous support levels are now acting as barriers to further price increases.

He speculated on possible market moves later in the week, saying that if Bitcoin manages to hold and break above $60,000, it could quickly rise back into the mid-$60,000s. He described this scenario as a potential surprise for those who exit the market too early and capitalize on fear and uncertainty.

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