Is there a potential trap pattern playing out in Bitcoin.
Major Signals
- Bitcoin's price increased by about 14% and scaled beyond the USD 37,000 barrier.
- Ethereum is trading over USD 2,500, XRP might gain traction if it settles over USD 0.90.
- BTG's rise has sent it beyond USD 70, while KSM is up more than 25%.
We have noticed that Bitcoin has risen back above the descending triangle formation in the last few hours. Bitcoin did break through this level in search of new support. A bull trap, also known as a “whipsaw pattern,” is a misleading signal in which the value of a stock, cryptocurrency, or any other kind of financial asset seems to be recovering or reversing after a downturn when, in fact, the asset is likely to collapse further. Does this mean the coin could dump below 36k USD anytime soon?
The rise of Bitcoin
Today, Bitcoin is down 0.66% and still trades above USD 36,000 BTC began to retrace heavily after failing to break above $37,000 a few days ago. It lost over $6,000 in value in a matter of hours and fell to $31,000 – the lowest price tag in three weeks.
However, as previously reported, the bulls stepped up at that point and recovered a few thousand dollars. The situation has improved further in the last 24 hours, with bitcoin rising by another 8% to just shy of $37,000. BTC reached a new five-day high of $37,600 just a few hours ago but has since retraced slightly.
BTC's market capitalization has risen to this level, bringing it back close to $700 billion. Furthermore, the asset's market dominance has increased by 1% in a day and 2% in two days to 43 percent. These encouraging developments may come as a surprise to some, given China's recent actions against the cryptocurrency industry. Nonetheless, El Salvador became the first country to make Bitcoin legal tender within its borders, contributing to the price increase.
The rise and fall of Ethereum
Both the ETH and BTC charts indicate the possibility of a trap pattern forming. Ethereum fell 3.2 percent today and is now trading just above USD 2,400. Ethereum hit a low of $2,300 but has risen by more than $200 to trade well above $2,500. On Tuesday, Binance Coin fell to $320. Nonetheless, BNB rose to $380 before settling slightly above $360.
Other altcoins
Minor gains have also been made by ADA, DOGE, XRP, UNI, and BCH. Polkadot has outperformed all larger-cap altcoins, rising 11 percent to just under $24.
Overview of the Cryptocurrency Market. Quantify Crypto, Inc.
The total market capitalization has recovered another significant portion of its value and is now above $1.6 trillion.
