Attention Traders- ‘Dead Cat Bounce’ is Approaching- Will Bitcoin (BTC) Plunge to its Initial Levels?
The post Attention Traders- ‘Dead Cat Bounce’ is Approaching- Will Bitcoin (BTC) Plunge to its Initial Levels? appeared first on Coinpedia Fintech News
The crypto markets have thrived in the past few days, with multiple events fueling the upswing. The global market cap increased by more than 10%, reaching levels above $1.1 trillion from lows of around $930 billion. Bitcoin’s price has surged heavily since the past weekend and has increased by more than 30% to mark the yearly high of $26,200.
However, the bulls appear to have vested to some extent as the prices have been consolidating very hard and also flashing the possibility of a minor pullback in the coming days. In such a case, the possibility of a dead cat bounce could be high, where-in the price may witness a steep drop, slashing the crucial support.
The BTC price has skyrocketed several times in recent times, making investors more optimistic. High volume columns are seen around the $20K area, and a similar column was witnessed around $24,000 also. Hence, it is flashing the signals of a correction after a very hot rally.
According to the technicals, the strength index is weakening on the hourly chart. Therefore, before a strong increase, one can witness a prior reflection of the strength index next to the price barrier support line.
Besides the 4hr timeframe, the strength index soared high to reach the peak and displayed a bearish divergence. Therefore, raising the possibility of a ‘dead cat bounce’ that may drag the price lower to $22,000 after it faced a steep rejection from the current level.
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