Bitcoin Weekly Forecast: BTC recovery rally could be bull trap in disguise, here’s why
Bitcoin (BTC) price remains unfazed even after the multiple spot BTC ETF delays from the US Securities & Exchange Commission (SEC). But investors need to be careful with the ongoing BTC rally as it could be a trap for early bulls.
Bitcoin (BTC) price is currently close to retesting the 20-week Exponential Moving Average (EMA) as shown in the chart below. The previous article sheds light on a potential fractal that could trigger a massive correction, should history repeat.
Polkadot Price Forecast: DOT reversal seems inevitable after 92% correction from all-time high
Polkadot (DOT) price, in nearly two years, has shed 92.91% from its all-time high of $55.09. The massive downswing in DOT has pushed it down to levels that were last seen in October 2020. Hence, the chances of this altcoin forming a bottom and rallying are high.
Polkadot price is down 92.91% from its all-time high and currently trades in a tight range. The three lower highs and equal lows on the daily chart have created a descending triangle setup. Descending triangles, when formed after a rally or at the top of a trend, could result in a downtrend upon breakout. But since DOT is down 92.91% from its all-time high, the chances of a downward breakout are less.
Key signals of crypto market revival
The crypto market has been torn, rising over 2% in the last 24 hours to $1.076 trillion. The excitement came after the approval of the Ethereum Futures ETF from Valkyrie, which will be available for trading from Friday. It's not the victory everyone expected, as they were waiting for a long list of spot Bitcoin ETFs to be approved. But the positive news coincided nicely with a rebound in equity markets and a corrective decline in the dollar, adding fuel to the fire.
Bitcoin surged above $27K on Thursday, gaining over $800 (3.2%). The momentum allowed it to climb above its 50-day moving average, something it has been unable to do since early August. The ability to hold levels above this curve will be the first confirmation of a change in trend and will turn observers' attention to the 27.5 area, where the previous local highs are located. We believe a move above $28K will attract even more buying interest.
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