Market Recovery, Genuine Or Bull Trap? - Cryptocurrency News, Price Analysis
Market Recovery, Genuine Or Bull Trap?
The market is flashing with price surges. Almost all coins are recovering from last weeks mid-week dump, and bitcoin, as always, is leading the bullish charge. So, is the market really recovering or is this what some experts term as a “bull trap”. In the past, prices have surged for several hours only to fall after. This is a classic plot that is organized by bulls looking to dump the assets they own, feeling that the asset is of high risk and is likely going to fall. First, they buy more, creating a demand in the market, in turn pushing prices up. Then when the price is just right for them to sell the asset they have thus far, they dump it all to new investors who get interested in the increasing prices. This can also be interpreted as a ‘pump and dump’. Something which is all too well known in the crypto market.
This will often result in prices bottoming at even lower levels than the first time. So, in this case, since bitcoin last week bottomed at just over $6,100 if this is a bull trap and it backfires on buyers, the next bottom will likely be below $6,000. Experts have given $6050 as a key support level for bitcoin and have argued that if prices slip past this, it will invalidate any possible bullish rally. This is because it will set the market for panic and in the past, the market panicking has led to dramatic price falls that.
However, although the market is still moving cautiously it is looking optimistic. Among coins that have pulled a spectacularly outstanding performance for the day are Odyssey, 0x or Basic Attention token, which are up by more than 16%.
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