Bitcoin Bull Trap Forms as Traders Bet on $55K
Bitcoin's recent rally to $66,921 has stalled and appears to be following a familiar pattern, that of a bull trap. The price has fallen back to $63,422, which is a trend reversal from the bullish momentum seen earlier in the week.
The daily chart for Bitcoin shows a clear bearish trend, with every major indicator pointing downwards. The 200-day exponential moving average (EMA) has been breached, and the Relative Strength Index (RSI) is at 46.5, which is below 50, a bearish lean.
The Squeeze Momentum Indicator has been active for nine bars, indicating that something is building up. However, this type of squeeze resolves in the direction of the prior trend far more often than it reverses it, and the prior trend for Bitcoin is down.
On Myriad, a prediction market built by Decrypt's parent company Dastan, traders are betting on Bitcoin hitting $55,000 before $84,000. The odds are currently 65.7% in favor of $55,000.