Bitcoin (BTC) Traders Alert: Is Price Surge to $60.4K a Potential Bear Trap?

The price of Bitcoin (BTC) has surged to a 10-day high of $60,400, sparking discussions among Bitcoin (BTC) traders about the potential for a bear trap. A bear trap occurs when a rising price entices sellers to act, thinking the price will fall again, but instead, it continues to climb, trapping those who sold early.

On July 14, BTC’s price soared past $60,000. This increase came right after a shocking event—an assassination attempt on a U.S. presidential candidate, Donald Trump. Fortunately, the candidate was not harmed, but the news caused a significant stir in the markets.

According to data from Crypto Markets Pro and TradingView, the crypto market surged following news of the attack, which Trump survived. Also, Bitcoin (BTC) traders responded by buying more Bitcoin, pushing its price to a local high of $60,423 on Bitstamp. This was the highest level seen since July 4.

BTC is known for reacting strongly to global political events. This sensitivity to world news shows that people often turn to Bitcoin as a safe place to invest their money during uncertain times. The reaction to the attempted attack on a major political figure highlights how global events can lead to sudden moves in cryptocurrency prices.

Bitcoin (BTC) Traders: Traders Eye Weekly Close for Confirmation

The unexpected spike in BTC’s price over the weekend has gotten a lot of attention from Bitcoin (BTC) traders, but experienced traders are now watching to see if this increase will hold. Trading on weekends can be unpredictable and sometimes shows big changes because there are fewer people buying and selling.

Crypto Tony, a popular trader, expressed his views on X FKA Twitter, saying, “$60,500 reclaim would be awesome to see today for the bulls. Real sign of strength if we get it.”

Trader and analyst Rekt Capital emphasized the importance of the same level as BTC/USD tried to hold onto a reaccumulation range post-halving that was now in jeopardy.

“Bitcoin is less than -1.5% away from positioning itself for an all-important reclaim of $60,600 as support,” he noted. “Bitcoin has 24 hours to do so to protect the ReAccumulation Range.”

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With the price now up 5% compared to the July 12 close, a notable gap in CME Group BTC futures might be set to fill.

For another popular trader, Daan Crypto Trades, there was still a chance for a different scenario—a bear trap.

“Still a weekend move, but if there’s ever a place to just run away with it and keep a lot of market participants sidelined, I couldn’t think of a much better spot to do so,” he shared in his latest post on X.

“Anyways, liquidity/volumes are relatively low and it is yet to be seen how stocks open up tomorrow.”

Current live data from CoinGlass showed liquidity clustering at $60,660 at the time of writing, with support strengthening below the $60,000 level.

As Bitcoin bulls grasped at trend line support, the move to 10-day highs also let BTC/USD try to reclaim the critical 200-day moving average, standing at $59,207 as of July 14.

This recovery was part of several “bull market trendlines” recently lost. As reported by news sources, others include the short-term holder realized price—the aggregate cost basis for Bitcoin market speculators.

Close to the 200-day trend line was the average purchase price for U.S. investors in spot Bitcoin exchange-traded funds. According to onchain analytics from Checkonchain, shared on X by its founder Checkmate, this was at $58,240 on July 10.

Conclusion

Bitcoin’s recent price surge following the assassination attempt shows the high volatility and reactive nature of the cryptocurrency market. For Bitcoin (BTC) traders and investors, staying informed and alert is essential. Understanding the impact of global events on market prices and watching key price levels can help in making informed trading decisions. In the fast-paced world of cryptocurrency, being prepared for sudden changes is the best strategy.

Stay glued to The BIT Journal for more news on Bitcoin (BTC) traders and other crypto updates. As the market evolves, staying informed is crucial for anyone involved in cryptocurrency trading.