Bitcoin is now trading over $54k, and the price action seems strong. But we should note that it already reached $53k once before and crashed like crazy to $40k. The price of Bitcoin, therefore, needed a strong movement when it was at $50k. And it was the ultimate bear trap as the price jump to $54k was very fast, and any short positions with a high margin would have been liquidated. The price of Bitcoin now seems to be in a good enough position to reach a new all-time high.
The bear trap at $50k
While most people were expecting a bull trap at $50k, it now looks like to have turned to a bear trap. Yes, when the market crashed once from $53k, it seemed that it was a bull trap, but the $40k support held firm and gave a serious boost to the coin price. It was so good that Bitcoin went up above $50k in just a week. For those who don’t know, a bear trap means when investors speculate that the price will go down based on the movement, but the price rises to surprise the investors.
While in 2013 and 2017, after the crash, we saw a bull trap. Things seem to have changed this time around, and investors could be in for a double top pattern. In the near term, the price needs to move past $60k and to an all-time high to confirm this 100%. But still, as of now, things look good for Bitcoin.
Ethereum and alts
While Bitcoin has pumped above $50k, Ethereum and other altcoins have also done well. On the first day of the pump, they did consolidate a bit, but now things look good. Altcoins continue their recovery, and if Bitcoin manages to rise in value, so will alts. For Ethereum, there is a strong resistance between $3600-$3700, and the price has been trying to break this level for 2-3 days now. If it breaks, $4000 could be just around the corner, or we could drop down to lower levels.
What are your thoughts on the fact that $50k for Bitcoin was a bear trap? And are you bullish or bearish at the moment? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Binance stops certain services in South Africa after warning.
