A bear trap may have been sprung in Bitcoin over the weekend as a breakdown through the neckline of a bearish head & shoulders pattern triggered on Friday, targeting a move down to the $7,800 area. However, buyers came in to snap up Bitcoin at bargain prices on Sunday and that buying has continued this morning with a test up as high as $8,825 this morning. The stage is now set for a bull trap if price can get back above $9,000:
Bitcoin (4 Hour)
A further move up to the $9,400-$9,600 area would be the minimum upside objective, and there would be a very good chance of a retest of $10,000 over the next few weeks.
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