Bitcoin at a Critical Support Despite a Drop Below $19,000-Is it a Bear Trap?
Bitcoin price broke the crucial support line and slumped hard below $19,000 just before the release of the fresh CPI rates. The market is expecting yet another shock wave as the MoM of the FOMC meeting hinted at an increase in the rates to lower the rising inflation. Therefore, in such a scenario, wherein BTC prices have dropped after each announcement, a similar reaction is expected in the next couple of hours.
Presently, the asset is trading within a crucial support zone after breaking down from a bear flag. Hence, the upcoming CPI rates may surely drag the price below the support levels. However, one of the well-known analysts believes the dump could be nothing but a bear trap, which may compel market participants to sell their assets at the bottom.
Capo points out the rising SPX 500, to which the crypto markets are said to correlate. On the other hand, the dollar strength DXY Index has been dumping firmly. Therefore, the analyst believes a massive rebound may still be expected that may uplift the price beyond $21,000 very soon. However, if the attempt for a rebound fails, then the BTC price may face a rejection & drop hard to plunge close to $16,000.
No matter, the market sentiments are bearish, but the bulls appear to be awaiting the right time to jump in as the prices reach $18,100. Therefore, the upcoming CPI rates are expected to drag the price close to $18,000 but may certainly hold these support levels and also trigger a firm rebound. With a rebound, Bitcoin price may rise high surpassing the crucial resistance at $20,800 to reach $21,000 very soon.