Bitcoin (BTC) price topped $ 18,000 on Nov. 29 and hit $ 18,209 on Binance. But still, Traders are becoming cautious despite the Bitcoin price rally over the weekend.
Bitcoin price is currently facing resistance around $ 18,200. This is also the 10-day moving average (MA) on the daily chart. As Cointelegraph reported yesterday, Some traders continue to expect BTC to drop again for a short period of time before the rally can continue.
According to Coinmarketcap, Bitcoin’s market cap is currently $ 338,145,038,630.
Why a bullish trap for Bitcoin price now?
A trader whose pseudonym is known as “Crypto Capo” predicted that the price of Bitcoin would show a relief rally to $ 18,000 when it fell on the region of $ 16,000.
On November 27, when Bitcoin was still at $ 16,700, the trader was said He was ready to sell $ 18,000.
He added that he will now start hedging at $ 18,100 and plans to shorten the hedge in case the trend reverses. Short term, The trader noted that the first confirmation of a correction would be a drop to $ 17,400. Said::
“Start building a hedging position. I don’t want to sell altcoins as the entry was very good. So hedging is a better option here. The invalidation of the hedge is clear.”
If Bitcoin continued to drop below $ 17,400 and later hit $ 16,800, the trader said a drop into the $ 14,000 region would be likely..
However, if Bitcoin breaks above $ 18,400 and consolidates around $ 18,200, it would invalidate the bearish structure.. Crypto Capo also noted that consolidating above $ 19,000 would invalidate the bearish structure entirely.
Another trader, whose pseudonym is “Loma”, who was discussing a bullish structure for Bitcoin at $ 17,500, said he had cut his long position in half.
The dealer emphasized that Bitcoin price is nearing resistance as it tries to close its weekly and monthly candles. Considering the $ 18,200-18,400 area is still a resistance area is the trader said::
“Closed halfway at $ 18,080 ~ Not too overexposed to the resistance that comes with weekly or monthly closings. Lots of buying opportunities if we break $ 18.4 ~ Not many short opportunities if we don’t.”
There is an anti-bullish scenario for BTC
A technical analyst called “CryptoBirb” said that Bitcoin usually faces two types of corrections: 15% and 30%.
The analyst anticipates a drop to $ 14,000, but also notes that this is not guaranteed. He pointed out several technical indicators, including this one Bitcoin price is in oversold territory for the first time since the rally began. Wrote::
“There are two main types of corrections for Bitcoin price: -15% and -30% decline. In anticipation of a region of 14,000, I found this to be the first return to the mean and the first oversold uptrend since Bitcoin price began is rebound, it’s a VERY strong sign. I wouldn’t be surprised by an all time high before Christmas. Who’s with me? “
The bullish scenario for the price of Bitcoin would continue to oblige BTC to claim the $ 18,400 and consolidate above to confirm the new assistance levels.
The popular retailer filbfilb, meanwhile, said it is currently opting for cash as Market uncertainty requires better risk management.
“”A break below $ 15,000 and a change in support before the resistance can present a direct short-term opportunity.“he wrote in his weekly Sunday newsletter.
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