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LINKS FOR ADDITIONAL READING FOR THIS VIDEO & ALL INFO IN TEXT DOWN BELOW:

What is a Bull Trap??
https://www.investopedia.com/terms/b/bulltrap.asp

Why $4,000 is a significant number:
https://www.marketwatch.com/story/bitcoins-4000-mark-becoming-life-or-death-for-traders-says-analyst-2019-03-19

Three White Soldiers:
https://www.investopedia.com/terms/t/three_white_soldiers.asp

What is a Candlestick?:
https://www.investopedia.com/terms/c/candlestick.asp

BTC Price Points:
https://sg.finance.yahoo.com/news/three-price-resistance-levels-beat-113020747.html

What It’s All Really About:
1: https://youtu.be/XitOqSMXZ9w
2. https://youtu.be/H93JkYdXnD4
3. https://youtu.be/ZQmKe1MNHxA
4. https://youtu.be/GVwWwWUj3NU
5. https://youtu.be/r35vHfjbukg

I can’t make a video like this without the disclaimer that I am not a financial expert, this is not investment advice, all information provided in this video is for entertainment purposes only.

If you’ve heard the phrase “Bull trap” being thrown around lately because the price of Bitcoin has begun to rise a bit, but you’re not sure what it is, or what you should or could do about it. Let’s take a better look into it today.

So right off the bat, a bull trap is essentially a false positive. It occurs when a coin that has been in a downward price trend suddenly reverses but that reversal doesn’t have enough momentum and ultimately the coin continues is downward trend. This is also called a whipsaw pattern.

If you’ve been in this space for the past year, you certainly are well aware of the downtrend to which I am referring. As of late, there seems to be a bit of hope in the air that the bulls may have gained some traction and the crypto winter may be over. Are we seeing a bull trap?
Here are some things to take note of if you want to determine this:Is the trading volume increasing with the price? If not, please be careful with your trades, this very well might be a bull trap. Low volume signals that this price movement doesn’t have a lot of momentum and could easily retrace.
Are there bullish candlesticks that follow the breakout? A Three White Soldiers is one example of a bullish candlestick pattern that is used to predict the reversal of a downtrend.
If you are a trader and you want to protect yourself from taking big losses during a bull trap, double check the volume, if it’s low relative to the price movement, go ahead and set some stop losses so you will be protected if the price ends up falling.

A lot of people have been a bit on edge lately with Bitcoin and this price of $4,000. This is a significant price point for Bitcoin because for the past 4 months, this price has been the battle ground for the bulls versus the bears, and the bears have been winning, meaning there have been more traders willing to sell at a lower price than $4,000.

Luckily for Bitcoin, it has now established this $4,000 mark as a level of support. This means that instead of trying to fight upwards past $4,000 it now has become a price point that is somewhat a safety net that Bitcoin has not fallen past. So if we consider $4,000 a victory, what is the next hurdle and what happens then?

According to good old Yahoo Finance, these are the key resistance levels that Bitcoin will need to surpass for us to see a price like $5,000 and beyond.
First is $4,190 which Bitcoin did surpass about a month ago, but that victory was very short-lived, it was not met with much momentum at all and ended up resulting in a quick retrace down to about $3,800. And that’s something to take into consideration. The speed at which Bitcoin rises, a slow rise will exhaust the bears and give the bulls a better chance to establish dominance. Which it seems like this is what we have been witnessing this past week.
After $4,190, keep your eye out for $4,236 and than $4,388. Again, according to that yahoo finance article, if these price points are met and coincide with high volume, $5,000 is next.

source

31 COMMENTS

  1. I’ve seen many bull traps. My gut tells me this one is real. Bottom was in December. Now it’s slow and steady, until the parabolic rise! But even if trap, still good. Because buy buy buy

  2. Don’t be so sure of yourself. Compare volume from that $6000-$10000 range to this range from $3000-$4000. Massive difference. Furthermore, What Bear whale would short massive amounts of Bitcoin for them to immediately get bought up in a blink of an eye. He wouldn’t make any money. To get the price to 2500ish, you need about 10000 Bitcoin short sell. Do you know how many Bitcoin need to be bought to get the price right back to where it is now at $4000? Do the math. Not much. It would basically slingshot right back up. The Bearwhale would get crushed. We are near the bottom. No one is going to sell right now, and it would not be smart for a whale to short 10000 Bitcoins. $3000-$4000 is the bottom. We might be in this range for many months though, maybe even a year from now.

  3. I'm not nervous. I just buy 1000 usd worth of Bitcoin every payday (2k every month) drop it to cold storage and go on with my life. I expect to enjoy some nice gains over the next couple years. If the price crashes again I've been building up some cash (with my MGTOW enhanced frugal lifestyle) which I'll dump in. I also have a big ammo box full of silver left over from the 2008 recession that I'll throw in. I think we're going to be trading mostly sideways for a few months though.

  4. Thank you for the video. Thanks to your previous videos I finally got the real BTC religion and understand that faith in yourself as the bank is the key. So any fiat currency (unlimited printing) value is really just a scheme to confiscate wealth. If a majority of the world's population adopt BTC and reduce fiat usage then wars will diminish because of trust-less and open block chain and lack of funding for the industrial military machine and prosperity will follow. Namaste.

  5. If we consider volume as the volume shown by coinmarketcap.com which is manipulated then the volume is pretty big compared to the previous months. Just look at ltc, the volume is around 1.5 blns out of 3 blns market cap, which is huge and shows the interest in ltc right now. Btc has also a good volume, around 11b compared to 3b in December when the dip occurred. I think it's gonna go to 5k. Just my opinion. Fasten your seat belts ?

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