Bitcoin’s abrupt move past $10,200 on June 1 gave a tad of joy to the investors. However, investors who assumed it to be a Bull run and invested more were left devastated. BTCUSD plummeted to $8,600 yesterday.
Those who followed BTCUSD price action for a long time were not at all surprised by the sudden reversal of Bitcoin prices. The fake bull traps in BTCUSD are more common than one might think!
John Bollinger says it’s time to go short in BTCUSD
John Bollinger is the famous creator of the technical indicator, Bollinger Bands. According to John, the $10k breakout by BTCUSD was a fake breakout, and people should be cautious and preferably go short!
His tweet reads thus:
“The is a Head Fake at the upper Bollinger Band for $btcusd, time to be cautious or short.“
The technical outlook for BTCUSD: Weak consolidation
Bitcoin plummeted to $8,600 and is now back at $9,500. However, it is in a consolidation state now. The hourly timeframe for BTCUSD shows the various barriers BTCUSD is immediately facing.
- The Fibonacci 50% retracement level is at $9549.68. BTCUSD will likely fall back after retracing this level.
- The trendlines show temporary resistance levels. The different trendlines still converge below $9,600. In case BTCUSD falls below any of these trendlines, the decline could be very steep. Furthermore, the long term resistance level is at $9,621.63.
- BTCUSD has lately remained less traded. The so-called king of cryptocurrency has an illiquid market currently. The only time the market became active was when it crossed $10,000 and after the massive drop yesterday.
The eye-catching thing is the fact that the volume spiked in green only once. But the red spikes indicating the sell-offs are much more profound.