Bitcoin Surge May Be a Bull Trap, Analyst Warns

Bitcoin and Ethereum have been stuck in a narrow trading range recently, but Bitcoin has managed to surge while its counterparts remain stagnant. According to analyst Gu Jingci, this could be a typical bull trap.

The price action on the 4-hour candlestick chart shows that after reaching highs near $19,200 for Ethereum and $64,500 for Bitcoin, the price surged and then pulled back, forming a small bearish candle. This indicates downward momentum has slowed but remains weak.

A recent early morning surge followed by a retreat produced a relatively large bearish candle, nearly wiping out part of the previous day's gains. This formed a preliminary bearish engulfing or 'dark cloud cover' pattern, indicating obvious selling pressure at high levels and suggesting a possible short-term pullback.

Based on this analysis, Gu Jingci suggests shorting Bitcoin near $64,400 to $64,800, targeting $62,000 to $63,000. Similarly, he recommends shorting Ethereum near $19,050 to $19,200, targeting $18,200 to $18,500.

It's essential to note that the content of this article solely reflects Gu Jingci's opinion and does not represent Bitget in any capacity. This analysis is not intended to serve as a reference for making investment decisions.