Bitcoin Shows Strength As Price Holds Above $16,500; Is This A Bear Trap?

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  •  BTC’s price loses its previous all-time high of $18,000 as Binance rejects the FTX takeover, with the price responding with a decline to a region of $15,500. 
  •  BTC’s price continues to look bearish with the market’s current state, as things look uncertain for most traders and investors. 
  • BTC’s price bounces from a low of $15,500 on the daily timeframes as the price aims for a recovery toward the 50 Exponential Moving Average (EMA)

In the last few days, the crypto market has been erratic, with the price of many altcoins, including Bitcoin (BTC), battling for survival after the news that Binance would not be taking over FTX after conducting due diligence. Previous weeks saw the price of Bitcoin (BTC) perform well, rallying from a low of $19,200 to a high of $21,600. Most altcoins trend higher as many produced gains of over 200%, including DOGE rallying from a region of $0.55 to a high of $0.15, with many hoping for more recovery bounce. Still, these expectations were cut short by the uncertainty surrounding the crypto market, leading to much fear about where the market is headed. (Data from Binance)

Bitcoin (BTC) Price Analysis On The Weekly Chart

The past few days have been filled with so much turbulence in the crypto space as many altcoins have struggled to show strength after losing their key support holding off price decline.

The current uncertainty surrounding the market has resulted in reluctance on the part of traders and investors to make altcoin purchases, as there is no assurance if they would be heading up any time soon.

The news of Binance rescuing the situation by taking over FTX was good. Still, after conducting their due diligence, Binance decided it would not take over FTX as this has affected the market negatively, sending the price of BTC on a spiral movement to $15,500.

The price of BTC bounced off this region showing some great strength to a region of $17,300 as the price aims to break higher. The price of BTC needs to rally to a region of $18,500, acting as a demand zone to remain safe from sell-off. 

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

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

Price Analysis Of BTC On The Daily (1D) Chart

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

The price of BTC remains considerably strong in the daily timeframe as the price trades above $16,500 support after bouncing off from the region of $15,500, which saw BTC losing its demand zone to the bears. 

If the price of BTC breaks above $18,500, we could see more rallies for BTC price; a break below a region of $16,000 would be a bear trap as the price could go lower.   

Daily resistance for the BTC price – $17,500.

Daily support for the BTC price – $16,500-$15,500.

Featured Image From zipmex, Charts From Tradingview 

Source: NewsBTC

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