Bitcoin (BTC) Price Surges Back Above $70K. Is This Another Bull Trap?

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Written By Maya Cantina

Sun, 7/04/2024 – 18:34

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Contents

  • A bear trap? 
  • Extreme greed 

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Bitcoin (BTC), the top cryptocurrency by market cap, managed to reclaim the much-coveted $70,000 level earlier today, peaking at $70,230. 

It is up 2.4% over the last 24 hours, currently trading just below the aforementioned level. 

However, it is worth mentioning that $70,000 is a formidable resistance level that bulls have repeatedly failed to crack. At press time, the top cryptocurrency is changing hands at $69,704 after giving up some gains. 

A bear trap? 

As noted by popular cryptocurrency trader Ali, the TD Sequential, a powerful technical indicator, is currently showing a sell signal on the four-hour chart. The analyst has predicted “a one to four candlesticks correction” for the largest cryptocurrency.    

Bitcoin’s failure to gain a foothold above the $70,000 level on Apr. 1 recently led to a sharp correction to the $65,000 level. However, Bitcoin managed to recover from this drop relatively quickly. 

Extreme greed 

According to the Fear & Greed Index, which measures Bitcoin sentiment on a daily basis, the largest cryptocurrency has once again succumbed to “extreme greed.” This implies that the market is showing signs of froth following a short-lasting correction. 

The bulls’ latest attempt to crush the $70,000 resistance level comes ahead of the much-anticipated halving event. The event is just 11 days away, and many expect the market to become even more torrid due to growing mainstream media coverage. 

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