Downtrend is still there - protect your cash!
Hello my friends, today I will start with the definition of an important term:
Bull Trap: A bull trap is a false signal indicating that a declining trend in a stock or index has reversed and is heading upwards when, in fact, the security will continue to decline. The move "traps" traders or investors that acted on the buy signal and generates losses on resulting long positions
Said that, what we experience last hours has a every high possibility to be a bull trap. First, check the last candles: we see 2 green crosses and on the last hours the prices just didn't change.
Second strong signal of a bull trap is at the volume: it is decreasing, showing no demand. It means bulls are losing their power.
Do you want a confirmation? Ok: check your own chart and see what happened between 2nd and 4th February before the dip to 6k: a very similar bull trap.
The movement may reverse to a uptrend? Yes, of course. Remember we're trading in a very manipulative market. Few whales might push the prices up or down at any moment. Sai that, let's accept: the TA shows still a downtrend.
Bull Trap: A bull trap is a false signal indicating that a declining trend in a stock or index has reversed and is heading upwards when, in fact, the security will continue to decline. The move "traps" traders or investors that acted on the buy signal and generates losses on resulting long positions
Said that, what we experience last hours has a every high possibility to be a bull trap. First, check the last candles: we see 2 green crosses and on the last hours the prices just didn't change.
Second strong signal of a bull trap is at the volume: it is decreasing, showing no demand. It means bulls are losing their power.
Do you want a confirmation? Ok: check your own chart and see what happened between 2nd and 4th February before the dip to 6k: a very similar bull trap.
The movement may reverse to a uptrend? Yes, of course. Remember we're trading in a very manipulative market. Few whales might push the prices up or down at any moment. Sai that, let's accept: the TA shows still a downtrend.
Just a reminder: Except by one day, every Sunday in 2018 Bitcoin prices were down.