In a recent episode of Crypto Banter’s “The Sniper Trading Show,” analyst dissected Bitcoin, discussing various obstacles and approaches to dealing with trading through these challenges.
With Bitcoin currently hovering around the $57,403 mark, up 2.4% in the past 24 hours but still down 21.9% from its March peak, market sentiment is cautious.
This cautious stance is echoed by the Crypto Fear and Greed Index, which the analyst shows to be at a cautious 28, indicating that buyers are getting “cold feet”—a sentiment that historically signals buying opportunities, albeit with a cautious approach.
The analyst reminded viewers to keep an eye on longer time frames, based on a consistent bullish stance on Bitcoin since its $10,000 valuation in 2020.
Is Bitcoin Setting a Trap?
The analyst pointed to critical resistance levels at $65,000 and $70,000, warning that the market could see a jump back or bull traps set to liquidate overleveraged positions.
Throughout the conversation, the analyst discussed Bitcoin’s current struggle to hold support above a very important $60,000 to $61,000 range recently – one that has proven strong as support has now become a formidable resistance.
According to the analyst, this inability to break through this price range, now seen as resistance, suggests a change in the market structure where previously supports become resilient, potentially preventing further price increases.
The analyst discussed the possibility of Bitcoin entering a range or falling into a trap that could precipitate a flurry of liquidations, emphasizing the need for traders to be versatile and prepared for sudden market movements.
Altcoin Perspectives
Adding to the mix, the analyst identified that the small dip in market dominance for Bitcoin suggests a possible upside for altcoins should broader market sentiment turn bullish.
He emphasized that this gradual shift could indicate a potential advantage for altcoins, consistent with previous times when Bitcoin’s dominance began to decline before any uptrend among alternative cryptocurrencies.
Meanwhile, recent technical analysis from prominent analyst Ali to reveal Bitcoin is inside a parallel channel on higher timeframes, and the TD Sequential has just flashed a buy signal suggesting a possible short-term recovery to around $58,300.
In contrast, CryptoQuant CEO Ki Young Ju offered a more moderate view. point of view towards continued capitulation by miners, suggesting that the market may lack enthusiasm in the coming months. He advised maintaining a bullish long-term outlook but cautioned against excessive risk-taking during this period.
The market is absorbing everything #Bitcoin sales are good. Demand is strong.
-Samson Mow (@Excellion) July 9, 2024
Featured image created with DALL-E, chart from TradingView