Bitcoin price reaches 8,300 USD – all just a bull trap?

Bitcoin price reaches 8,300 USD – all just a bull trap?

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The Bitcoin price increased significantly in the last week and increased by more than 9% to now approx. 8,300 USD (depending on trading place). The problem with this impressive rise is the fact that it is built on a low volume, which does not express strength for the price. In general, sentiment has been calmer and torn for days.

The analysts at CoinDesk have taken a closer look at the whole thing and suspect a bull trap, more at http://www.bitrebels.com/business/bitcoin-ready-new-bull-market/.

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Bitcoin Reaches 8,300 USD and Still Under Pressure

Bitcoin and the rest of the Crypto market seem disoriented and so the Bitcoin share price growth surprises with decreasing volume. A scenario that could quickly move in another direction and turn into a bull trap. So a return to USD 8,000 or less does not seem unrealistic and could catch positively tuned traders on the cold end. However, if the trading volume recovers, a bullish move is not out of the question, see also https://neconnected.co.uk/is-a-new-bitcoin-bull-market-starting/.

Bitcoin Trading Volume Falling

Analysts are particularly concerned about the Bitcoin trading volume, which, as you can see in the chart above, has declined significantly in the days since the interim high of around USD 9,100. The 24h trading volume is currently around USD 19 billion and is thus around 42% lower than on 16 May.

  • More importantly, the daily trading volume during the recent recovery from USD 7,500 to USD 8,300 averaged around USD 18 billion, well below the sales volume of USD 24 billion and USD 29 billion on May 30 and June 4.
  • Bitcoin’s daily trading volume remained consistently above its 50-day moving average throughout the price rise from USD 4,000 to USD 9,000. However, the volume has been below the 50-day average since June 6, questioning the sustainability of the rally from USD 7,500 to USD 8,300.

It is easy to see from the figures that the Bitcoin share price is currently moving on thin ice. No news like the start date for the Bakkt futures on 22.07. could change anything. It remains to be seen how the volume will develop in the next few days. Should it rise we could look forward to better times again, if it continues to fall it actually threatens a bull trap and the Bitcoin price could come under pressure.