Bitcoin Breaks the “Bull Trap?” as BTC Price Spirals Back to $3,860 but Trading Volume Spikes
Finally, we broke the $4k mark after anticipating and waiting for the entire week. But again, the prices took a hit and Bitcoin went down to $3,860 with 24-hours loss of 2.90 percent, according to the data provided by Coinmarketcap. The leading cryptocurrency by a market cap of $73 billion has been on its way to breaking the December high at $4,285.
Bitcoin Price 1-month chart, Source: Coinmarketcap
Meanwhile, the daily trading volume is surging and surpass its high from February 19th at $9.9 billion. Currently, BTC is managing the daily trading volume of $10 billion after dropping down to around $7.3 billion yesterday.
From $4,100, Bitcoin has been expected to rise to the $4,400 level as the crypto trader and investor Josh Rager says,
“Slight retrace and push up as expected – breaking the $4100 resistance at the moment. A close above this on the weekly would be bullish. Though more resistance on daily – I can see it push as high as $4400 based on horizontals.”
With entire market cap adding about $10 billion in the past 24-hours looked like the bulls were going to go a long way, but that hasn’t been the case as it lose about $9 billion back.
It has been expected to be bull trap as the market analyst and trader, Benjamin Blunts says that it is nothing more than the usual rinse and repeat. It all starts with Bitcoin starting the surge only to start trading sideways while altcoins try to catch up with more percentage jump than the flagship cryptocurrency itself only to experience a marketwide dump that happened at the end of 2017 as well.
With the green market, another “to the moon” narrative is now going to permeate the market but it doesn’t mean we are onto the new heights this time. With Bitcoin market, there’s no guarantee but analysts are trying to be cautious as this surge could follow a market-wide dump. Having said that, the short term rally is here and it’s better to follow the momentum.
“The next couple of days will consist of “we made a higher high” and “moon lambo” posts. my advice is simple. Trail stops up, be cautious, and for the love of god stop trying to short this momentum.”
Let us know your views on the green turned red market, if we are onto a short term rally or is it is the dump after all?