Bitcoin (BTC), although it may be fighting for $50,000, could be the “ultimate tool” to make bears pay.
Rekt Capital, a popular analyst and trader, described the latest BTC price action in a tweet on October 5 as the “ultimate Bear Trap.”
Nalyst for Bitcoin Bears: More Suffering
Bitcoin has once again been the subject of heated debate, having reached $50,000 in the last month, and then hitting highs of $50,000.
The topic of the day is whether BTC/USD can hold $50,000 and how far it could fall, as volatility continues.
Rekt Capital however, is more interested in longer time frames. The weekly chart has formed a head-and-shoulders pattern, which is a sign of new downsides.
Based on the most recent strength, this time is likely to be different.
He stated, “Looks like that Weekly Head and Shoulders is the ultimate Bear Trap,” to his Twitter followers.
BTC/USD 1-week candle chart (Bitstamp). Source: TradingView
Bullishness pervades sentiment
If Bitcoin continues to rise out of its multiweek price range, then the next major resistance levels will be closer to the current all-time highs.
Cointelegraph reported that the outlook for Q4 and 2022 are bullish. Many expect a peak in BTC prices within six months.
If you are looking to buy Bitcoin back higher, this is the perfect time to sell Bitcoin!
— Ryan Cantering Clark (@CanteringClark) October 4, 2021
According to the Crypto Fear & Greed Index, sentiment, which was last week in “extreme fear,” flipped back into “greed” when $50,000 was returned.
As of Oct. 5, the Crypto Fear & Greed Index has been updated. Source: Alternative.me
Altcoins have seen a slowdown despite Bitcoin’s growth. This could mean that there may be some pain before a renaissance later.
“ALT/USDT pairs looks good. Scott Melker, a trader, warned Tuesday that the ALT/USDT pairs looked rough.
BTC will usually rise, which can drag the ALT/USDT pairs higher, but crush them against BTC. It is better to trade in BTC at these times. Although not certain, it is likely.