NewsBTC
1 hour ago
0 0

Bitcoin’s $90,000 Recovery Faces Risk of Massive Bull Trap

Bitcoin Price Analysis

Despite Bitcoin recovering above $90,000, market indicators suggest a potential further correction. Analyst Rekt Fencer warns of a possible "bull trap," where prices temporarily rise above resistance but then decline, potentially leading to investor losses.

  • Bitcoin's price recovery followed declines to $84,000.
  • The cryptocurrency is trading below the 50-week moving average (MA), previously signaling significant drops.
  • A historical pattern suggests potential declines to approximately $36,200.

Bitcoin price

Market Sentiment and Future Prospects

  • Analyst Miles Deutscher estimates a 91.5% chance that Bitcoin has reached its bottom.
  • Negative news, like concerns over Tether (USDT) and China's actions, often precedes local price bottoms.
  • Market flows are shifting from bearish to bullish, with reduced selling by major investors.
  • Liquidity conditions are tightening, with policy changes potentially favoring buyers.
  • Deutscher highlights that current market fear, uncertainty, and doubt (FUD) levels, alongside improved trade flows, support his analysis of a bottom.