Home CryptocurrencyAnalysis Bitcoin Trades Above $16,500 – Could This Be a Bear Trap?

Bitcoin Trades Above $16,500 – Could This Be a Bear Trap?

by SuperiorInvest
  • BTC price loses all-time high of $18,000 as FTX fiasco continues to weigh on its price
  • The price continues to look bearish with the current state of the market as things look uncertain for most traders and investors
  • BTC price bounces off $15,500 low on daily time frame as price hits 50 again Exponential moving average (EMA)

The past few days have been rosy for Bitcoin (BTC), with the price rising from a low of $15,500 to a high of $16,500, with altcoins enjoying some relief in the crypto market. Despite the relief in the price of Bitcoin (BTC), the price is still trading below its previous all-time high support of $18,000, which is a bit problematic given that this region is now serving as resistance for a major rally. The domino effect of the FTX saga and other huge investors has stalled the market as the market is yet to make a major move leading to great fear of where the market could be headed. (Data from Binance)

Bitcoin (BTC) price analysis on a weekly chart

The past few days have been filled with so much turbulence in the crypto space as many altcoins have struggled to show strength after losing their key support and preventing the price from falling.

BTC price suffered a price drop to the $15,500 area, with many expecting a further drop to the $14,000-$12,000 area as the price rebounded from that area after forming a bullish pin as buyers pushed the price higher. to the region of $16,500.

BTC price needs to break above $18,500 to see more relief as this region has become key for better price action to the $19,500 high.

Weekly resistance for BTC price – $18,500.

Weekly BTC Price Support – $15,500.

BTC price analysis on a daily (1D) chart

BTC Daily Price Chart | Source: BTCUSDT On Tradingview.com

BTC price remains quite strong on the daily time frame as the price trades above $16,500 after dropping to the $15,500 area due to the FTX fiasco.

If the price of BTC breaks above $17,500, we could see further gains in the price of BTC; a break below the $16,000 region would be a bear trap as the price could fall.

BTC price is trading below 50 and 200 EMA acting as resistance for BTC price to trend higher. The price of $18,500 and $23,500 corresponds to the 50 and 200 EMAs that need to be recovered to keep the bulls safe from another bear downtrend.

Daily resistance for BTC price – $17,500.
Daily support for BTC price – $16,500 – $15,500.

Featured Image From BusinessDay, Charts From Tradingview

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