Michael Pizzino, a renowned crypto analyst, is warning that Bitcoin (BTC) may have a false breakout due to declining volumes.
Speaking on Bitcoin spot ETF inflows and outflows, the analyst also pointed out that outflows have begun to exceed inflows, alongside a notable decline in the US dollar, signalling potential short-term downward pressures on Bitcoin and related markets. Despite these indicators, the analyst suggests that the bull market might not be ending yet but cautions investors about possible trap signals. This comes as other analysts also warn of a post-halving while some speculate it could retest $55,000.
Pizzino cites false breakouts and a seven-bar swing, which could mislead both long and short-position holders. Conversely, according to his analysis, the seven-bar swing pattern, indicative of a bullish signal, suggests a possible reversal after an extended single swing direction.
He also highlights weaknesses in Bitcoin’s price action, which are observed through short-term trend lines and 50% levels. However, he also cites that while short-term indicators might suggest market weakness, long-term analyses remain optimistic. Pizzino also points out that after the first bear market cycle, a period of congestion led to a fake-out signal, suggesting a trap for investors during the accumulation phase. Despite stating some possibilities of a bullish breakout, the analyst anticipates a potential breakdown based on monthly chart analyses.
Bitcoin’s Bullish and Bearish Scenario
Looking at further insights, Jelle, a renowned crypto analyst, states that BTC has broken out on the monthly chart, which, according to him, is a red start to the month.
#Bitcoin convincingly broke out on the monthly chart.
A red start to the month is a true bull market classic.
Just look at the wicks of these candles.
Pretty sure this month is no different. pic.twitter.com/oNecVF3cmd
— Jelle (@CryptoJelleNL) April 5, 2024
Jelle further states that historically, Bitcoin halving events have led to massive breakouts, but not before a period of choppy price action. However, Michael Van De Poppe, MN Trading Venture’s founder, states that initially, Bitcoin has shown a terrible response to the unemployment rate data. The analyst cites that Bitcoin remains stuck between a few key levels and needs to break $69,000 in order to see a new ATH test.
