Bitcoin (BTC) has corrected to below $26,000 following an unsuccessful attempt to breach the $30,000 mark, widely regarded as a critical resistance point for initiating a new bull run. Recent price movements have left some analysts pondering the cryptocurrency’s uncertain future.
In particular, in a series of posts on TradingView, a crypto analyst by the pseudonym Tolberti expressed on September 3 that Bitcoin’s recent surge and price drop could potentially be a ‘bull trap’ of the year.He pointed out that the current Bitcoin chart appears to form a significant head and shoulders pattern—an indicator typically associated with bearish trends.
Bitcoin price analysis chart. Source: TradingView
“Bitcoin pumped significantly, but it’s definitely a bull trap, so do not fall for it! We can see that the chart is printing a huge head and shoulders pattern, which is a very bearish sign. This pattern is not confirmed yet as the neckline is holding, but the price is below the major blue trendline, which increases the probability of a breakdown!,” he said.
Bitcoin seven-day price chart. Source: Finbold
A review of Bitcoin’s technical analysis reveals that bearish sentiments currently dominate the cryptocurrency. A summary of the one-day indicators from TradingView shows a ‘sell’ recommendation at 14 while moving averages suggest a ‘strong sell’ at 13. Oscillators, on the other hand, recommend a ‘neutral’ stance at 8.
Bitcoin technical analysis. Source: TradingView
As Bitcoin continues to display a stagnant growth pattern, market observers are closely monitoring other potential catalysts, including the upcoming 2024 halving event, macroeconomic factors, and regulatory developments.
Disclaimer:The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
