Bitcoin (BTC) latest move: bull trap of a legitimate breakout?

The latest Bitcoin surge has left many market predictions and even more shorts in the dust. People felt the coin could potentially reach $6800 USD and then either bounce off it, as it was a strong resistance, or settle around it and consolidate. However, yesterday we saw all TA go through the window as the market price shot through the mentioned resistance and kept going uninterrupted until it reached $7469 USD earlier today. Right now, the price seems to be looking to stabilize around this level, as we haven’t seen any significant movements in the last 24 hours.

Bitcoins current price is $7,387.85 USD which is a 0.86% increase for the day. Volume has also noticeably picked up in the last couple of days, as coinmarketcap data currently has it at 823,392 BTC. Market cap has gained additional 20 billion since we last time reviewed it, leaving Bitcoin firmly in the seat as the most valuable cryptocurrency in the world.

Traders feel like there was a strong case of the inverted head and shoulders pattern unfolding here, as the price graph did form a head with two shoulders with a neckline around $7000 USD. This implies that we are in for more bullish movement up ahead. Still, some recommend that you take your profits now and wait for a better re-entry, as there might be a pullback to just above $6800. Right now, the bulls are attempting to break through the current resistance at $7500 but in the short term we will probably see Bitcoin drop to $7100. Further forward, targets of $7800-$8000 USD look to be the next resistances where bears will swoop in and attempt to bring the price down again.

The price did take a slight drop during the writing of this article, as CryptoMento points out:

“Here comes the dump.. right on schedule after futures expired. Manipulation at its finest.. but we know what they are doing now don’t we ;)”

Meanwhile, some feel that Bitcoin isn’t out of the woods just yet. People think that the latest upwards move was simply caused by a short squeeze, or massive liquidation of BTC/USD shorts on exchanges like BitMEX. According to these analysts, this upwards break is a typical bull trap caused by that was combined by the good news that we saw in previous 2-3 days, causing retail investors to move in stronger than usual in fear of missing out. RSI on 4H chart is currently overbought and a retracement is expected sooner rather than later.

As things stand, the market is polarized on where we are headed next. One thing is for certain: we are in for an interesting couple of days.

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