Bitcoin has seen much of its recently incurred technical strength degrade over the past 48 hours, as its ongoing break below $9,000 following a recent rejection at $10,000 is a dire sign.
It now appears that the crypto could soon target significantly lower lows if it is unable to garner any upwards momentum in the near-term.
Huge Bear Trap
One analyst believes that Bitcoin could confirm this recent price action as a “huge bear trap” if it is able to reclaim $9,200.
The analyst noted that he does believe a visit to this level is imminent, as buyers may attempt to stop shorts out by propelling the crypto up towards $9,050 or higher.
$BTC lower time frames
Watching if it can make a run to 9050-9.2k for possible shorts. Reclaim 9.2k and would have to assume this was just a huge bear trap. Something to watch over the next few 4hr closes and the daily close pic.twitter.com/iwNWEfZyP7— ₿ Pentoshi (@Pentosh1) May 25, 2020
How the crypto reacts to $8,850 could offer significant insights into its mid-term trend.
TD Sequential Signals Bitcoin Overperformance Compared to Altcoins In Short Term
The TD Sequential indicator has presented a buy setup on BTC.D price charts, depicting Bitcoin‘s weight against the rest of the crypto market.
While its arguable as to how effective using BTC dominance charts are for analyzing crypto assets, the signal itself has proven highly accurate again and again across the crypto space.
It even signaled a sell set up just ahead of the historic Black Thursday market collapse that sent Bitcoin price tumbling back to lows around $4,000.
Altcoins have been suffering against Bitcoin for over two years, and are well overdue for a recovery. This recovery may need to wait a bit longer if this signal plays out on BTC.D charts and altcoins take an unexpected hit.
Whatever glimmer of an alt season that has been underway, will be gone before it really got started.
Bitcoin could be poised to see a massive decline
He points to two band formations on the crypto’s chart, noting that a rejection at the upper band signals that it could soon decline to the lower boundary.
“First clear close below the average for BTC. Bottom band target comes in at $7k with a double touch target looking closer to $5.9k. And yes, we typically do band to band runs.”
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