TeaAfter a hard few days of hard work, the crypto space has seen a sigh of relief as the market has turned green. Most of the altcoins are currently trading above their respective resistance levels and may also hold for some more time. However, the flip or rebound certainly cannot be considered a recovery as it appears to be another bull trap laid by the bulls or whales to sell a bit more.
The market has been trading in a descending trendline since the beginning of 2022, consisting of some highs and lows. Therefore, a slight volatility fails to completely eliminate the bearish effect. Therefore, the current upward trajectory may also not consolidate until BTC price secures a level above the $21,800 level.
According to a popular analyst, the market is still showing signs of continuation of the declining trend despite the current rally.
The analyst compared the current market sentiment to that of May 2021 and said that the southward trend leads to further downside in the market.
How will BTC and ETH prices trade in Q3?
Currently, the price of BTC and ETH is again up around 6% and 9%, just like it did before. Conversely, the masses remain bullish, despite the extreme bearish trend and the Fear & Greed Index falling to a level of 10 or less. Mainly due to the availability of liquidity which has enabled many traders to become ‘Holecoiners’. Around 878,357 addresses now have at least one bitcoin which is currently at the highest level.
Therefore, it is extremely important for traders to keep a close eye on the top 2 cryptos by the end of the current week. The chances of bitcoin getting rejected around $20,800 are still open, as the upper resistance of a symmetrical triangle coincides with these levels. Therefore, rejection at these levels could end the price heavily.
As in a. mentioned by popular analystBTC price is still hovering due to fear of rejection. If there is a drop from these levels, the price could again drop below $20,000 after a tough fight at these levels. From here, another possibility emerges, where the asset may test the previous month’s low and if it fails to sustain, may seek further new lows.
Collectively, traders need to keep a close watch as the markets may remain green for a few days or till the end of this week. A strong bounce can only be validated if the price of Bitcoin (BTC) is not only above $20,800 but also above $21,800. However, a long jump above $22,300 could crush the bears to some extent.
Therefore, only after these levels are tested and cleared, the trend of the crypto market can change.