Analyst Kyle Doups recently spoke on the Crypto Banter channel about the important position of Bitcoin below $60,000 and the importance of the $58,000 to $60,000 range. He warned viewers about potential traps in the market and shared tips on how to avoid them. He noticed that many of the top coins were rebounding on the hourly and daily charts, giving the market a bit of relief. Altcoins have fared better than Bitcoin, with some even posting significant gains.
“Where are we in the cycle? I've talked many times before about the loss of volume that tends to occur during the corrective phase. Now, to give you the full information, I'm going to talk about the loss of volume that tends to occur during the correction phase. I'm a very, very, very cautious bull on the ice, right? But that ice is cracking and we're about to crumble. Yes,” he said.
However, if Bitcoin closes above $60,000, a massive bear trap could occur, and the bullish limit was just hanging in the balance. The analyst emphasized the importance of the weekly 21 exponential moving average and cautioned against losing it as it could signal a deviation to the old trading range. Despite reaching these levels, there is historical precedent for a pullback, especially between the 100-day and 150-day moving averages of bull markets.
See also: Why is now the best time to buy Bitcoin?
While there may be a short-term spike, the overall trend remains bullish, but the correction phase could last up to 8-12 weeks and drawdowns could be 20-40%. Bitcoin is down 23% and could fall further to around $44,000. However, such movements are expected to be short-lived and a rapid rebound is expected.
The analyst added: “If weekly candlesticks start closing above $60,000, we'll quickly see how a massive bear trap unfolds there.” So I'm currently putting a little focus on it. ”
