'Bear trap' warning for Bitcoin from Peter Brandt

Technical analyzes continue to come as Bitcoin exceeds the 80 thousand dollar level again. Peter Brandt, known for his graphic analysis, drew attention to the price structure of Bitcoin in recent days.

Brandt, who shared the BTC chart from his account

Brandt described the move as a "bear trap."

“It is not a situation to be taken lightly”

The famous trader compared the movement that occurs immediately after the bear trap to a "springboard", that is, the price moving upwards by gaining strength from a springboard.

Brandt used the following statements in his post:

"The bear trap was immediately followed by a springboard. This is not something to be taken lightly. It could lead to a strong move."

In the Bitcoin chart shared by Brandt, it is seen that the region of approximately 76 thousand dollars works as an important support. After falling below this level for a short time, Bitcoin rose above the support again and then made a sharp rise.

What does bear trap mean?

In technical analysis, “bear trap” is an expression used when the price breaks an important support level downwards, giving the impression that the decline will continue, but rises above this level again in a short time.

In such cases, investors who sell or open short positions due to a support break may have to close their positions when the price rises again, which can accelerate the upward movement.

The point that Brandt drew attention to was that Bitcoin's movement under support was not permanent and was immediately followed by a strong upward turn. The experienced trader thinks that seeing these two movements consecutively creates a technical structure for Bitcoin that should be followed carefully.