Bitcoin Bounces From $100,000 — Bullish Reversal Or Another Trap?

3 weeks ago

Bitcoin (BTC) precocious bounced from the $100,000 level, sparking hopes of a bullish reversal. However, traders stay cautious, arsenic this rebound could besides beryllium a impermanent bull trap. With cardinal absorption looming astir $105,000–$106,000, the market’s adjacent determination volition beryllium captious successful determining whether BTC tin prolong an upward inclination oregon resume its downtrend.

A Possible Bullish Reversal After Reclaiming $102,000

According to Lennaert Snyder, Bitcoin is showing aboriginal signs of a imaginable bullish reversal. In the post connected X, Snyder highlighted that BTC bounced from the caller lows and reclaimed the $102,000 level, signaling renewed buying interest. This recovery comes aft a play of weakness, suggesting that the marketplace whitethorn beryllium attempting to stabilize earlier the adjacent large move.

Snyder emphasized the value of maintaining this momentum and establishing a higher debased astir $101,400, which would propulsion the bullish script into a much sustained rally. Conversely, a nonaccomplishment to support support present could bespeak lingering bearish pressure, truthful this level is captious for gauging marketplace sentiment.

In the meantime, the adept is intimately monitoring little clip framework charts for imaginable scalp-long opportunities if a reversal occurs adjacent $101,400. This tactical attack allows progressive traders to capitalize connected short-term swings portion waiting for confirmation of a broader bullish trend.

Key absorption remains astatine $104,700, which volition beryllium a decisive level for determining the adjacent limb of the move. A palmy breakout supra this absorption could unfastened the way toward $107,500, signaling that bulls are regaining control. However, fixed that it’s the weekend, Snyder cautioned that traders should beryllium prepared for abrupt swings oregon mendacious breakouts arsenic liquidity tends to beryllium little during this period.

Bitcoin Reclaims Momentum, But $105,000–$106,000 Holds The Key

In his latest update, marketplace adept and capitalist Ted Pillows noted that Bitcoin concisely dropped beneath the $100,000 people earlier bouncing back. The short-lived dip highlights ongoing uncertainty and the tug-of-war betwixt buyers and sellers astatine cardinal intelligence levels.

However, Ted cautioned that this rebound feels similar a imaginable bull trap. While the terms recovered quickly, the underlying momentum whitethorn inactive favour the bears, suggesting that traders should stay vigilant earlier assuming a sustained upward trend.

He emphasized that until Bitcoin tin reclaim the $105,000–$106,000 zone, the probability of further downside remains higher. Without a confirmed interruption supra this captious absorption area, the marketplace could proceed to enactment levels arsenic debased arsenic $93,394, keeping the short-term outlook skewed toward a imaginable downtrend.