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The cryptocurrency market has been on a rollercoaster ride over the past few months, with Bitcoin and Ethereum prices seeing significant swings. After a period of relative stability, the price of BTC soared by a remarkable 28% in January, leading to liquidations worth more than $500 million as exchanges closed traders’ leveraged short positions.

However, some experts are warning that this surge in BTC price may not be a sign of a bull market return and it could be a bitcoin bull trap.

Bitcoin (BTC) Price Prediction and Technical Analysis: Bitcoin Bull Trap?

An important technical indicator to consider is the 200-day EMA, which is widely used to spot macro market trends. When the price of BTC is above the 200-day EMA, it is considered a bullish market trend, and when below, it is considered bearish.

Bitcoin has been consolidating around the 200-day EMA for the past four days after trading below it for the past 284 days, before managing to close above the key level yesterday. It should be noted that the last time Bitcoin price traded above this level was from March 27 to April 6, 2022, when the market experienced a false breakout.

Given this, traders are advised to wait for a confirmed breakout and a bullish alignment of the EMA before taking positions in the cryptocurrency market currently, and also to exercise maximum risk management.

The 20-day, 50-day, and 100-day EMAs of BTC are currently at $18,660, $17,885, and $18,317, respectively. This shows that the short and long-term trends are bullish as the current price is above the three EMAs, making it a promising sign that we could get the aforementioned breakout if broader macro factors allow.

Bitcoin trading volume is currently at 22,316K with an estimated volume moving average of 31,547K. With a few more hours in today’s session, it seems likely that Bitcoin’s trading volume will exceed its recorded average – an indication of high investor interest in the market. cryptocurrency.

With an RSI reading of 88.91, it is possible that this uptrend is due to a retracement and consolidation before going any further. However, to ensure that traders get the most out of this data during an uptrend, it is ideal to use multiple indicators with RSI for more accurate readings. Traders should watch for volume support and look for any divergence that could potentially signal that the current trend is weakening and this may be a Bitcoin bull trap.

However, the MACD is also showing bullish signals, further confirming a potential continued bullish move. The MACD is at 1069.59, the signal line is at 593.41 and the histogram is at 476.51. This suggests that the bullish momentum should continue.

The flow bitcoin price is $21,151 with a daily loss of 0.18%. The immediate support levels are at the 200-day EMA at the $21,000 and $20,500 price levels. The immediate resistance levels are $21,302-$21,895 and the next resistance levels are $24,445-$25,212.

The uptrend may continue, but be careful to avoid the Bitcoin bull trap

In conclusion, technical indicators suggest that Bitcoin is currently in a strong uptrend and should continue its near-term bullish momentum macro factors permitting. However, the RSI suggests that a potential reversal could occur in the near future, so investors should exercise caution and keep a close eye on the market to avoid a Bitcoin bullish trap.

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