Categories: MarketsMenafn

A Bitcoin Trap? Analyst Warns

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.

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.

Jerry Rolon

After working for 7 years as a Internet Marketer, Jerry now aims to explore the journalistic side of Internet. With his impeccable knowledge in this domain, he churns out some of the best news articles from the internet niche. With respect to acedamics, Jerry earned a degree in business from California State University.

Recent Posts

Why Zusshu Indian Cuisine is the Best Place for Indian Cuisine in Germany

When it comes to Indian cuisine, Germany might not be the first place that comes…

5 hours ago

Polymarket Traders See 77% Chance of Spot Solana ETF Approval This Year

Traders on popular prediction market Polymarket are weighing in a 77% chance of a spot…

18 hours ago

This Week’s Top 10 Crypto Assets by Whale Transactions Reveal Market Sentiment

Whales’ behavior has shown a notable trend that may point to the short-term trajectory of…

2 days ago

XRP Search Interest Explodes Beyond BTC’s as Price Hits 7-Year High

The native token of the XRP Ledger has seen a massive price surge this this…

2 days ago

From Meme to Movement: MAGAVERSE Donates $1 Million to Support MAGA Initiatives

January 16, 2025, Washington, D.C., ZEX PR WIRE, MAGAVERSE, the trailblazing memecoin project, has made…

3 days ago

MAGAVERSE Sets New Standards with $1M Donation to Political Initiatives

MAGAVERSE, the trailblazing memecoin project, has made history with a stunning $1,000,000 donation to organizations…

3 days ago