Weekend bull trap? Traders remain cautious as Bitcoin price rebounds to $18K

The value of Bitcoin (BTC) surged above $18,000 on Nov. 29, reaching as excessive as $18,209 on Binance. Nevertheless, merchants are turning cautious regardless of BTC’s weekend rally.

Bitcoin at the moment faces resistance at round $18,200, which can be the 10-day shifting common (MA) on the each day chart. As Cointelegraph reported yesterday, some merchants nonetheless anticipate BTC to see one other drop within the close to time period earlier than the rally can proceed.

BTC/USDT 4-hour chart (Binance). Supply: TradingView.com

Why a bull lure for Bitcoin now?

A pseudonymous dealer often known as “Crypto Capo” predicted Bitcoin would see a reduction rally to $18,000 because it dropped to the $16,000 area.

On Nov. 27, when the value of Bitcoin was nonetheless hovering at round $16,700, the dealer said he is able to quick $18,000.

He added that he’s now beginning to hedge at $18,100 with plans to chop the hedge if the development reverses. Within the close to time period, the dealer famous that the primary affirmation of a correction can be a drop to $17,400. He said:

“Beginning to construct a hedge place. I do not wish to promote some alts baggage as a result of the entry was superb, so hedge is a greater choice right here. Invalidation for the hedge is obvious.”

If Bitcoin continues to drop under $17,400 and finally $16,800, the dealer mentioned a drop to the $14,000 area would develop into doubtless.

However, if Bitcoin rises above $18,400 and consolidates at round $18,200, that will invalidate the bearish construction. Crypto Capo additionally famous that consolidation above $19,000 would utterly invalidate the bearish setup.

Potential Bitcoin bearish and bullish eventualities. Supply: Crypto Capo

One other pseudonymous dealer often known as “Loma,” who mentioned a bullish construction for Bitcoin at $17,500, mentioned he has minimize half of his lengthy place.

The dealer emphasised that BTC is nearing resistance because it seems to shut its weekly and month-to-month candles. Contemplating that the $18,200-$18,400 space stays a resistance vary, the dealer said:

“Closed half of lengthy at $18,080~ Not seeking to be too overexposed into resistance coming into the weekly m/month-to-month closes. Numerous shopping for alternatives if we do break $18.4~ Not numerous promoting alternatives if we don’t.”

There’s a counter bullish state of affairs for BTC

A technical analyst referred to as “CryptoBirb” mentioned that Bitcoin sometimes faces two sorts of correction: 15% and 30%.

The analyst mentioned that he expects a pullback to $14,000, but in addition famous that this isn’t assured. He pinpointed numerous technical indicators, together with BTC being in oversold territory for the primary time because the rally started. He wrote:

“There are two main $BTC correction varieties: -15% & -30% declines. Whereas anticipating~14k area, I observed it is the primary return to the imply and first oversold bullish momentum cross because the rally began – VERY robust sign. Would not thoughts ATH earlier than Christmas. Who’s with me.”

The bullish state of affairs for Bitcoin would nonetheless require BTC reclaiming $18,400 and consolidating above it to substantiate the brand new assist ranges. 

Widespread dealer filbfilb, in the meantime, mentioned that he’s at the moment in money as market uncertainty is looking for elevated danger administration.

“Within the occasion of a breakdown under $15K and a flip of earlier assist into resistance, that will current a simple quick alternative,” he wrote on Sunday in his weekly e-newsletter.