Bitcoin Trades Above $16,500 – Could This Be A Bear Trap?

BTC’s price lost its all-time high of $18,000 as FTX fiasco continued to affect its price 
Price continues to look bearish with the market’s current state, as things look uncertain for most traders and investors 
BTC’s price bounces from a low of $15,500 on the daily timeframe as the price reclaims the 50 Exponential Moving Average (EMA)

The past few days for Bitcoin (BTC) have been rosy, with the price rallying from a low of $15,500 to a high of $16,500, with altcoins enjoying some relief bounce across the crypto market. Despite the relief for the price of Bitcoin (BTC), the price still trades below its previous all-time high support of $18,000, which is a bit problematic considering this region now serves as resistance for a major rally. The Domino effect of the FTX saga and other huge investors has left the market at a standstill as the market is yet to make a major move leading to much fear about where the market could be headed. (Data from Binance)

Bitcoin (BTC) Price Analysis On The Weekly Chart

The past few days have been filled with so much turbulence in the crypto space as many altcoins have struggled to show strength after losing their key support holding off price decline.

The price of BTC suffered a decline in price to a region of $15,500, with many expecting the price to dump further to a region of $14,000 to $12,000 when the price bounced off from this region after forming a bullish pin bar as buyers pushed the price higher to a region of $16,500.

BTC’s price needs to break above $18,500 for more signs of relief as this region has become key for better price action to a high of $19,500.

Weekly resistance for the price of BTC – $18,500.

Weekly support for the price of BTC – $15,500.

Price Analysis Of BTC On The Daily (1D) Chart

Daily BTC Price Chart Source: BTCUSDT On Tradingview.com

The price of BTC remains considerably strong in the daily timeframe as the price trades above $16,500 after a decline to a region of $15,500 due to the FTX fiasco.

If the price of BTC breaks above $17,500, we could see more rallies for BTC price; a break below a region of $16,000 would be a bear trap as the price could go lower.

The price of BTC trades below 50 and 200 EMA acting as resistance for the price of BTC to trend higher. The price of $18,500 and $23,500 corresponds to the price of 50 and 200 EMA that needs to be reclaimed for bulls to be safe from further downtrend by bears.

Daily resistance for the BTC price – $17,500.Daily support for the BTC price – $16,500-$15,500.

Related Reading: Ethereum Price Recovers But Bears Are Not Out Of The Woods Yet

Featured Image From BusinessDay, Charts From Tradingview

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