Bitcoin price finally broke out above $50,000 to record a new daily high of over $52,667 after spending the last two weeks under $50K. The key on-chain metrics is signalling bullish sign with the exchange Bitcoin volumes on the decline while whales continue to accumulate Bitcoin as Coinbase registered another 12K Bitcoin outflow yesterday.
While most of these metrics indicate another leg of bullish momentum, however, a crypto analyst who goes by the name of Credible Crypto has warned of a possible bull trap ahead and the surge might not be as seamless as many anticipated. The analyst warned that even though the hidden bearish divergence might get invalidated, the bulls might face rejection after topping $52,000. The analyst said,
I still believe this to be a major bull trap. Rather than a running flat, it looks like we will get an expanded flat. If right, we should see a fairly quick rejection after clearing the highs at 52k.
The hidden bearish div is likely to be invalided- a great sign for bulls. But, I still believe this to be a major bull trap. Rather than a running flat, it looks like we will get an expanded flat. If right, we should see a fairly quick rejection after clearing the highs at 52k. https://t.co/Rdm6Z5jY70 pic.twitter.com/OsJ6jAM1Am
— Credible Crypto (@CredibleCrypto) March 3, 2021
Bitcoin Bulls Face Rejection at $52K?
The bull trap seems to be in play now as Bitcoin price has faced its first rejection after topping $52,000 as predicted by the analyst. Bitcoin is currently trading at $51,579n with a nearly 6% rise over the past 24 hours. While on-chain metrics are still strong and might propel Bitcoin over $60K soon but in the short term, the $52K could become an immediate resistance before retesting its all-time-high of $58,330.
In the long-term, the top cryptocurrency is still looking strong and far-from losing its bullish momentum with a price target of $100,000 by the end of the year. The price momentum is forming a parabola while when priced on M1 money stock, the top cryptocurrency is far from its ATH as Dollar value continues to decline.
#Bitcoin priced in the M1 money stock still very far from its ATH. In the face of unprecedented money printing, the bull market may just be getting started. This cycle could get very wild. pic.twitter.com/8NFATAyeGJ
— Leeor Shimron (@LeeorShimron) March 3, 2021