Bitcoin (BTC) may be battling for $50,000, but its latest move could prove to be the “ultimate” tool to make bears pay.
In a tweet on Oct. 5, popular trader and analyst Rekt Capital described the most recent BTC price action as the “ultimate bear trap.”
Analyst predicts more suffering for Bitcoin bears
After reaching $50,000 for the first time in a month and going on to hit highs of $50,400, Bitcoin is once again the source of intense debate among market participants.
Whether BTC/USD can hold $50,000 — and how far it could fall if not — is the topic of the day as volatility continues.
For Rekt Capital, however, it is longer timeframes that are worth paying more attention to. Specifically, the weekly chart for the pair has formed a head and shoulders pattern — something which traditionally hints at fresh downside to come.
This time, based on the most recent strength, is likely different.
“Looks like that Weekly Head and Shoulders was the ultimate Bear Trap,” he summarized to Twitter followers.
BTC/USD 1-week candle chart (Bitstamp). Source: TradingView
Bullishness pervades sentiment
Should Bitcoin continue to climb out of its multi-week price range, the next major resistance levels lie closer to current all-time highs.
As Cointelegraph reported, the outlook for both the rest of Q4 this year and 2022 is bullish for many, with expectations calling for a peak BTC price to hit in six months or later.
This is a great time to sell Bitcoin if you want to buy back higher!
— Ryan Cantering Clark (@CanteringClark) October 4, 2021
Sentiment, which just last week was in “extreme fear,” flipped back to “greed” as $50,000 returned, according to the Crypto Fear & Greed Index.
Crypto Fear & Greed Index as of Oct. 5. Source: Alternative.me
For altcoins, which have slowed despite Bitcoin’s rise, pain may come first before a renaissance later on.
“ALT/USDT pairs looks good. ALT/BTC pairs looks rough,” trader Scott Melker warned Tuesday.
“Usually means BTC is about to go up, dragging the ALT/USDT pairs up a bit, but crushing them against BTC. Better off in BTC as a trader at those times. By no means certain, but likely scenario.”