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Bitcoin Trades Above USD 16,500 – Could This Be a Bear Trap?

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  • BTC price loses all-time high of $18,000 as FTX failure continues to affect price
  • Prices continue to drop with the current market conditions as things look uncertain for most traders and investors
  • BTC price bounced off the low of $15,500 on the daily time frame as the price retested the 50 exponential moving average (EMA).

The past few days have been good for Bitcoin (BTC), which saw its price rise from the low of $15,500 to the high of $16,500, with altcoins enjoying some respite from the crypto market’s surge. Despite the relief for Bitcoin (BTC) price, it is still trading well below its previous all-time high of $18,000, which is a bit problematic given that this area is now acting as resistance to a larger rally. to work. The domino effect of the FTX saga and other major investors has brought the market to a halt as the market has yet to take a major move that could move the market. (Data from Binance)

Bitcoin (BTC) price analysis on the weekly chart

The past few days have been so turbulent in the crypto space as many altcoins struggled to show strength after losing their main support to avoid further price losses.

BTC price experienced a downside break in the USD 15,500 area, with many expecting a further decline in the USD 14,000 to USD 12,000 area as the price bounces off this area after forming a bullish pin bar as buyers continue to push the price push up. Let’s move up to the $16,500 area.

BTC price needs to move above $18,500 for more signs of relief as this area becomes critical for better price action towards the $19,500 high.

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

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

BTC price analysis on the daily (1D) chart

Daily BTC Price Chart | Source: BTCUSDT on Tradingview.com

BTC price remained quite strong in the daily time frame as it traded above USD 16,500 after a recent drop towards the USD 15,500 area following the FTX fiasco.

If BTC price moves above $17,500, we could see more rallies for BTC price; A break below the $16,000 area would be a bear trap as the price could correct lower.

BTC price is trading below the 50 and 200 EMA which acts as resistance to the higher trend in BTC price. The prices of $18,500 and $23,500 correspond to the 50 and 200 EMAs that the bulls need to recover to be safe from further declines from the bears.

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

Featured image of BusinessDay, chart from TradingView

source: newsbtc.com

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