Bitcoin rebounds off 6-week lows amid warning of 'brutal' BTC price bull trap

Bitcoin (BTC) reclaimed $39,000 connected April 27 aft different nighttime of symptom saw BTC/USD deed its lowest levels since mid-March.

BTC/USD 1-hour candle illustration (Bitstamp). Source: TradingView

"All assets suffer" astatine hands of rampant dollar

Data from Cointelegraph Markets Pro and TradingView showed the largest cryptocurrency trading astatine $39,200 connected Bitstamp astatine the clip of writing, up 2.5%.

Tuesday had seen caller occupation arsenic soon arsenic Wall Street trading began, Bitcoin pursuing stocks downhill erstwhile again to deed $37,700 twice.

Despite that country already being connected the radar arsenic a liquidity drawback opportunity, immoderate were acold from convinced that the sell-off was done.

The existent relief, fashionable trader Kaleo argued, was simply a signifier of a dead-cat bounce and the existent symptom would statesman erstwhile momentum faltered.

Dump aft this bounce is implicit with is gonna beryllium truthful brutal

— K A L E O (@CryptoKaleo) April 27, 2022

"Well, this terms enactment connected Bitcoin isn't shouting excessively overmuch for upside, astatine this point. Tricky arsenic it's giving backmost each upwards propulsion again," Cointelegraph contributor Michaël van de Poppe added.

As throughout the week, the U.S. dollar showed nary signs of aborting its bull run, adding unit to crypto arsenic U.S. dollar currency scale (DXY) challenged multi-decade highs acceptable successful March 2020.

"The DXY is reaching higher than my basal case, owed to policymaker decisions extracurricular of my basal case," Economist Lyn Alden wrote successful a Twitter thread astir the phenomenon.

"Therefore, we request to beryllium alert of the marketplace issues that hap erstwhile this happens. It's nary milkshake (eg US increases rates and gets equity buy-in) but rather, each assets suffer."

U.S. dollar currency scale (DXY) 1-week candle chart. Source: TradingView

TradFi and crypto consciousness the fear

Nerves among crypto and accepted traders alike were frankincense plain to see, reflected successful plummeting marketplace sentiment.

Related: Bitcoin repeats uncommon play illustration awesome that resulted successful 50% BTC terms dips

The Crypto Fear & Greed Index reached its lowest level since April 12, which astatine 21/100 represented "extreme fear" arsenic the guiding marketplace mood.

Crypto Fear & Greed Index (screenshot). Source: Alternative.me

Its accepted marketplace counterpart, the Fear & Greed Index, until precocious lagging crypto successful "neutral" territory, besides fell into line, signaling 27/100 oregon "fear" connected Wednesday.

Fear & Greed Index (screenshot). Source: CNN

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.