Trap and dump? The price of Bitcoin (BTC) is recovering, but the bullish bounce could be short-lived. Eyes are mostly on the next major support, which could prevent Bitcoin from staying above $16,000, should news related to the FTX crisis boost the bears.
Bitcoin price back to $16,000
Bitcoin price rises to $16,279 on Bitfinex today, November 22, 2022. Cryptocurrency trades at $16,594 at the time of writing, and is currently seeing a 5% daily gain.
The price of Bitcoin therefore recovers the $16,000. However, has the cryptocurrency regained enough strength to approach $17,000? For trader il Capo of Crypto, the recent rise is just one bull trapwho would strengthen “the idea that the previous dumps were tests, and that the real dump is coming “.
A new major resistance?
Trader Rekt Capital also spoke about the Bitcoin rebound. He shared a chart that shows the cryptocurrency’s three most recent weekly candles. Rekt Capital pointed to the fact that Bitcoin has turned “the lows of two weeks ago into a new resistor (black) “.
For the trader, this week, last week’s lows around $16,250could become a new essential (blue) stop for Bitcoin this week.
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What support to face another bear run?
With the FTX crisis yet to rattle the crypto industry, where would the next support for Bitcoin be if markets were to experience another bear run? The Material Indicators platform commented on CryptoQuant contributor Maartunn’s tweet, saying that the “new buying wall” of $70 million to $12,000, could serve as a “safeguard” during the holiday week.
“A speculation on a grayscale announcement or something else” could cause this fall around this wall, which could thus stop the bleeding during the next capitulation.
The indicators that announce an imminent capitulation are multiplying. In the meantime, the markets are still witnessing bullish rebounds, which should not make us forget that the bears remain the masters of the game in the short term.
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