Crypto analyst Orson Fawley believes Bitcoin’s recent price drop was a “bear trap,” and it’s poised to climb back above $70,000.
Strong Recovery Signs
Fawley analyzed Bitcoin’s surge over the weekend and subsequent dip on Monday. He noted that the weekend’s surge formed a bullish candlestick, indicating strong buying pressure. This candlestick also broke Bitcoin’s previous “Inside Bar pattern,” further supporting the bullish sentiment.
Breaking above the psychological level of $60,000 was another positive sign, leading Fawley to believe the price decline was a false break.
Bear Trap Explained
Bear traps are price crashes that occur after a period of recovery, tricking investors into thinking the price has peaked. This attracts bears who short the price, but eventually, the price rebounds.
Ongoing Buying Pressure
Fawley analyzed Bitcoin’s 4-hour chart and observed a V-shaped pattern, indicating strong buying pressure from the bottom of the dip. The coin also broke above its downward trend line resistance.
Bitcoin is currently forming an accumulation zone around $64,000. If it breaks above this level, it will likely resume its uptrend.
Conclusion
Fawley believes Bitcoin’s price decline was a bear trap, and buying pressure remains strong. He predicts that Bitcoin will continue its climb towards its all-time highs.
