A crypto analyst has sounded the alarm over a critical breakout level that could trap many Bitcoin (BTC) bulls. The analyst has predicted that the BTC price could extend its ongoing recovery and potentially push toward the $80,000 level in the short term. However, he cautioned that this move could attract late buyers who mistake it for a sustained uptrend, only for momentum to fade sharply, leaving them trapped in losing positions.
Bitcoin Bulls Face Key Test At $79,300
Crypto analyst @Sherlockwhale warned in a post on X that Bitcoin may be approaching a key area where traders could misread the short-term upward move as bullish strength or a sustained breakout. According to the analyst, current market conditions could trap participants who expect a prolonged bull trend, as price action may end up forming a lower high instead of a sustained move upward.
The analyst explained that while many traders are currently expecting Bitcoin to confirm a higher high, he believes the structure is more similar to previous rejection zones around $107,000 and $97,000. In those instances, the BTC price failed to sustain an upward move, forming lower highs that trapped late buyers as sellers stepped in aggressively to take profits.
@Sherlockwhale suggests that a similar situation could develop again if Bitcoin approaches the critical level around $79,300. In his view, this area could serve as a turning point where bulls may get caught and possibly become exit liquidity. He outlined two potential bearish outlooks based on Bitcoin’s weekly chart structure.
In the first scenario, he predicts that if Bitcoin closes the week below $79,300, he would consider that a signal to take a short position. In that case, he targets a sharp reversal toward $60,000, with invalidation above the current weekly wick.
The second scenario assumes Bitcoin could move higher first before reversing to the downside. In that case, @Sherlockwhale expects the price to rally toward its next major resistance around $83,400, aligning with the 0.618 Fibonacci retracement level on the chart. This area is also seen as a potential liquidity zone where buyers could get caught before a major downturn begins. Even in this case, the analyst’s projected bearish target remains $60,000, likely viewing this level as a potential bear market bottom.
BTC To See More Upside Before Another Crash
Sharing similar bearish sentiment, market analyst Michael van de Poppe has predicted that Bitcoin could see another strong upside move, extending its ongoing rebound, before a steeper crash. According to the analyst, BTC is currently holding critical levels around $76,000 after rallying above $79,000 just a day before.
Poppe notes that the cryptocurrency is still preparing for more upside and could be heading toward its next resistance levels between $85,000 and $88,000 by May. He predicts that once the price reaches this level, it could reverse sharply, potentially declining toward $56,000.
Featured image from Getty Images, chart from Tradingview.com
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