$50K Bitcoin Is the “Ultimate Bear Trap,” Analyst Says As BTC Price Struggles for Key Level

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Bitcoin (BTC) may struggle to get to $50,000, but the final move may be the “ultimate” tool for attracting bears.

in a tweet On October 5, famous trader and analyst Rekt Capital described the latest Bitcoin price move as an “extreme bear trap.”

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Analyst predicts more suffering for Bitcoin bears

After hitting $50,000 for the first time in a month and continuing to hit all-time highs of $50,400, Bitcoin has once again become a source of intense debate among market participants.

Whether BTC/USD can hold $50,000 – and how much if not – is the topic of the day as volatility continues.

But for Rekt Capital, it is the longer time frames that are worth paying attention to. Specifically, the pair’s weekly chart has formed a head and shoulders pattern – something that traditionally points to the upcoming downside.

This time, based on the latest strength, it will likely be different.

He summed up to Twitter followers: “The weekly head and shoulders game appears to be the ultimate bear trap.”

BTC/USD 1-week candle chart (Bitstamp). Source: TradingView

Resilience pervades feelings

In the event that Bitcoin continues to break out of the multi-week price range, the next major resistance levels are approaching the current all-time highs.

As Cointelegraph reported, the outlook for the rest of this year’s fourth quarter and 2022 is optimistic for many, with expectations calling for a peak in bitcoin’s price in six months or beyond.

Sentiment, which only last week was in “extreme fear,” has returned to “greedy” with a return of $50,000, according to the Crypto Fear & Greed Index.

Crypto Fear & Greed Index as of October 5th. Source: Alternative.me

For altcoins, which have slowed despite bitcoin’s rally, the pain may come first before a revival later.

“ALT/USDT looks good. ALT/BTC looks rough,” trader Scott Melker warned Tuesday.

“It usually means that BTC is about to go higher, pulling the ALT/USDT pairs up a bit, but crushing them against BTC. I’d be better off with BTC as a trader at those times. Not in any way certain, but it is a possible scenario.”