The crypto markets are down by over 3% as the bears managed to trap the bulls after pretending to be inactive for a couple of days. Besides, the Bitcoin (BTC) price has also plunged by over 3.7%, marking interim lows at $60,487 from the highs slightly above $61,000. The market dynamics appear to have been laid down to trap the traders at the local highs as the bearish trade set-up continues to prevail.
The BTC price experienced significant volatility with a bearish impulse, trading within a descending parallel channel. Hence, it seems that the price is stuck within a very crucial range, which suggests a bearish continuation may prevail for a long time.
A popular analyst, Micheal van de Poppe believes that Bitcoin’s final ‘wash’ could happen in the $52,000 to $55,000 range anytime soon.
As per the above chart, the Bitcoin price is subjected to a final pullback to the lower support range of around $55,000 to $56,000. Following a bearish consolidation, the price is likely to trigger a strong rebound that could range close to the current ATH at $73,750. However, this trade is expected to consume more time than expected.
Presently, more than $150 million in longs that were entered, a few hours ago have been squeezed and a lot of open interest has been taken out. Therefore, a few more of these are needed, and then the Bitcoin price is likely to go up. In the meantime, the maximum amount of money will be extracted from the impatient players.
Meanwhile, the weekend is fast approaching and with the volatile price action into the CME close. Hence, there could be a good chance to create a gap, which may be filled during the next price action.