This cautious stance is echoed by the Crypto Fear and Greed Index, which the analyst shows stands at a wary 28, indicating that buyers are getting “cold feet”—a sentiment that historically signals buying opportunities though with a careful approach.
Is Bitcoin Setting a Trap?
The analyst pointed to critical resistance levels at $65,000 and $70,000, cautioning that the market could see a bounce back or bull traps set to liquidate over-leveraged positions.
Throughout the conversation, the analyst then discussed Bitcoin’s current struggle to maintain support above a very important range of $60k-$61k recently– one that proved strong as support has now become a formidable resistance.
According to the analyst, this inability to break through this price range, now seen as resistance, suggests a changing market structure where previous supports become resistant, potentially stalling further price ascents.
The analyst discussed the possibility of Bitcoin entering a range or getting ensnared in a trap that could precipitate a flurry of liquidations, emphasizing the need for traders to be versatile and prepared for sudden market movements.Outlook On Altcoin
Adding to the mix, the analyst identified that the small dip in market dominance for Bitcoin hints at a possible uplift for altcoins should the broader market sentiment pivot to bullish.The market is absorbing all sales nicely. Demand is strong. — Samson Mow (@Excellion)Featured image created with DALL-E, Chart from TradingView