Attention Traders-This Could be the Biggest Bull Trap of the Year-Bitcoin Signals Possibility of a Fake Pump

The post Attention Traders-This Could be the Biggest Bull Trap of the Year-Bitcoin Signals Possibility of a Fake Pump appeared first on Coinpedia Fintech News

Bitcoin always tries to record a nail-biting finish, but the recent close for the month of August failed to generate curiosity among traders. The BTC price remained more or less flat as the expected volatility could not be influx, which could have offered the token the required boost to propel towards the higher resistance. However, with the beginning of the last month of the quarter, market participants continue to remain slightly hopeful.

Still, September shares a history of being extremely bearish, which may not be suitable for a healthy rally ahead.

Just before the August close, the bears extended their action, dragging the price from the weekly highs of over $28,000 to as low as $26,000. This drop confirmed the bearish start for the month, which is believed to prevail until the end. However, yet another attempt to regain the levels above $28,000 can be expected, but the current trade setup signals it to be the biggest bullish trap of the year.

After a prolonged consolidation, the BTC price dropped from the $30,000 range to find its lows around the current price range. Meanwhile, the possibility of a rebound continues to hover over the token but carries a larger probability of a bearish breakdown. As seen in the above chart, the price has begun its trade within a rising parallel channel that is yet to be confirmed. Once done, the next pitstop could be at the 100-day EMA, which is close to $28,000. The rising RSI from the oversold region supports the bullish claim, but the lack of buying pressure fails to certify a rise above the bearish influence. 

Therefore, the BTC price may trigger a rise after testing the lower support of the channel at $25,700. This could attract huge liquidity and propel the prices back towards $28,000. But wait, there’s a catch. A massive rejection could be just below $28,000, somewhere between $27,850 and $27,900, followed by a huge pullback back below $26,000 by the mid of September.