A seasoned crypto analyst has raised concerns about a pivotal breakout level that may ensnare many Bitcoin (BTC) bulls. The analyst foresees the ongoing recovery in BTC prices potentially pushing toward the $80,000 mark in the near term. However, he warns that this movement may attract late buyers who could misinterpret it as the onset of a strong upward trend, only for momentum to dissipate, ultimately leaving them in unfavorable positions.
Bitcoin Bulls Face Key Test At $79,300
In a recent post on X, crypto analyst @Sherlockwhale cautioned that Bitcoin is nearing a critical price level where traders might mistakenly see a short-term uptrend as a sign of bullish strength or a genuine breakout. As per the analyst, the existing market dynamics could lead to a trap for participants who are anticipating an extended bullish run, as the price action may form a lower high instead of paving the way for a sustained move upward.
The analyst elaborates that while many traders are optimistic about Bitcoin confirming a higher high, he perceives the current structure as resembling previous rejection zones around $107,000 and $97,000. In those instances, Bitcoin’s price failed to maintain its upward trajectory, forming lower highs that trapped late buyers while sellers aggressively moved to take profits.
@Sherlockwhale foresees a similar scenario unfolding if Bitcoin approaches the crucial level around $79,300. He asserts that this zone could act as a turning point where bullish traders could inadvertently become exit liquidity for sellers. The analyst outlined two potential bearish outlooks based on Bitcoin’s weekly chart structure.
In the first scenario, if Bitcoin finishes the week below $79,300, he would consider that a trigger to initiate a short position, eyeing a rapid reversal toward $60,000, while invalidation would occur above the current weekly high.
The second speculation suggests that Bitcoin might experience an initial upward leap before reversing downward. In this case, @Sherlockwhale anticipates that the price could ascend toward the next major resistance area around $83,400, which coincides with the 0.618 Fibonacci retracement level. This region is viewed as a potential liquidity zone where buyers could be ensnared ahead of a major downturn. Even in this eventuality, the analyst’s bearish target remains fixed at $60,000, a level he likely sees as a potential bear market bottom.
BTC To See More Upside Before Another Crash
Echoing similar bearish sentiments, market analyst Michael van de Poppe has predicted that Bitcoin might witness another strong upward surge, extending its ongoing rebound before experiencing a sharper decline. The analyst notes that BTC is currently at critical support levels around $76,000, having rallied above $79,000 just a day before.
Poppe believes the cryptocurrency is still gearing for additional upside, potentially targeting resistance levels between $85,000 and $88,000 by May. Nonetheless, he anticipates that reaching this level could trigger a significant downturn, with prices possibly dipping to $56,000 thereafter.
