Bitrabo Editorial
Bitcoin seems to be rebounding from recent price drops, with analysts suggesting that the dip was a bear trap. Orson Fawley, a crypto analyst, explains in his analysis that despite the recent fluctuations, Bitcoin’s price trend remains optimistic.
Resilient Bitcoin Recovery
Fawley shared his insights on Bitcoin’s movement on TradingView, highlighting its journey from the weekend surge to the price drop on Monday. He noted that during the weekend surge, Bitcoin formed a bullish D1 candlestick close to its peak, indicating strong buying pressure that drove the price up.
Moreover, Fawley pointed out that this candlestick broke Bitcoin’s previous “Inside Bar pattern,” showing sustained buying pressure for the cryptocurrency. Breaking past $60,000 was a significant milestone, indicating positive momentum and supporting Fawley’s belief that the recent decline was a bear trap.
A bear trap involves a price crash following a recovery phase that tricks investors into thinking the price has peaked. This misleads bearish investors into shorting the price, only for the price to reverse its upward movement. Identifying the recent Bitcoin price drop as a bear trap suggests that the cryptocurrency is likely to continue its ascent towards its previous highs.
Persistent Buying Pressure on Bitcoin
Moving forward, Fawley analyzed Bitcoin’s price using a 4-hour chart, noting a V-shaped pattern formed due to strong buying pressure. The coin also broke through its downward trend line resistance and is consolidating around the $64,000 mark. If Bitcoin can surpass this level, Fawley anticipates a return to an uptrend structure.
Currently, Bitcoin is holding above $64,000 following a rapid increase early on Tuesday. The daily trading volume has surged by 45%, supporting Fawley’s view that buying pressure remains robust. Fawley asserts, “The bear trap seen on Friday followed by strength in D1 over the weekend indicates Bitcoin is gaining strength.”