Bitcoin (Bitcoin) Quickly regained lost ground on August 25 after failing to curb the bullish positions after a brief drop to 47,000 US dollars.
A rebound or a bull trap?
At the time of writing, the trading price of this currency pair was close to $48,700, which had risen by $1,500 in a few hours.
Even if lower lows continue to appear on the hourly chart, the analysis suggests a rebound, which has come true as the volume and relative strength index (RSI) performance improves.
However, for traders and analysts Rekt Capital, there is no need to celebrate too early. He warned that Bitcoin needs to eventually recover to a level above $48,000.
“BTC is showing some small signs of recovery,” he said Tell Attached Twitter followers in the chart comments.
“But if BTC cannot recover the red zone/blue level soon, then this recovery will only be a relief rally that turns previous support into new resistance.”
Reduce all doubts
Elsewhere, bullish sentiment still exists.
PlanB, the creator of the Stock-to-Flow series of Bitocin price models, reiterated that the BTC/USD 200-week moving average and the realized upper limit of Bitcoin are both at historical highs.
“People who bought Bitcoin and held it for more than 4 years (200 weeks) have never lost money!” He Tweet Optimistic view next to a chart showing indicators.
Bitcoin has never fallen below the 200-week moving average.Its incremental price, analyst William Clement explain It is the difference between the average upper limit and the realized upper limit, which has never been violated and is currently $15,200.
Delta often acts as a decisive support and is only tested in the pit of a bear market.