Bitcoin Price Analysis: Bull Traps Puts $BTC Price at Risk of Prolong Correction

By CoinGape July 16, 2023 In Bitcoin

Affected by the massive growth of the 5th largest cryptocurrency XRP, the leading coin Bitcoin witnessed intense buying pressure on July 13th. With a strong bullish candle, the buyers breached the range resistance of $31500, luring awaited buyers for the potential of uptrend continuation. However, the buyers could sustain higher prices which lead to a massive red undermining the bullish thesis. What’s next?


Also Read: Bitcoin (BTC) Set For $35000, Ethereum (ETH) Above $2000 As US CPI Inflation Falls

Bitcoin Price Daily Chart

  • The $31500 level persists as a strong resistance zone for the BTC price.
  • The 20-day EMA dynamic support maintains a high momentum recovery
  • The intraday trading volume in Bitcoin is $17.3 Billion, indicating a 34% loss.

Bitcoin Price Analysis



On July 14th, the Bitcoin price projected a long red candle that engulfed the buyer’s candle used to break the $13500 barrier. The sellers’ candles destroyed buyers’ weapons of breakout indicating a scenario of a bull trap which may flood more supply pressure as hasty buyers may get liquidated.

Thus, the coin price reenters the range boundaries stretched from $31500 to $29630. The Bitcoin price currently trades at $30461, but with sustaining selling it could plunge 2.75% to reach $29630 support

The price behavior at the aforementioned support would be crucial to check whether the prevailing recovery is intact, or whether BTC could witness a longer correction to $28460.

When BTC Price Can Escape the Sideways Trend?

The fake breakout from $31500 accentuated this level as a high supply zone. On the other hand, if the BTC price showed sustainability above $29630 in the coming days, the coin holders could witness a prolonged sideways trend. Therefore, a genuine breakout from either of the range pattern is needed to determine the near future trend for Bitcoin.

  • Bollinger Bands: The upper and lower band of the BB indicator aligned with range levels gives extra weightage to them.
  • Moving Average Convergence Divergence: The MACD indicator slope in a negative crossover state indicates the sellers actively influencing the Bitcoin price.
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