On the Crypto Banter channel, analyst Kyledoops recently presented a detailed analysis on Bitcoin’s critical level below $60,000 and the importance of the zone between $58,000 and $60,000. Kyledoops gave viewers important information on identifying these pain points in the crypto market and being prepared for possible risks.
While Bitcoin’s price below $60,000 increased uncertainty in the market, the range between $58,000 and $60,000 stood out as a critical region. Kyledoops pointed out that staying below this range could be a sign of a possible correction or a larger decline. Therefore, he emphasized that investors should closely monitor these levels and manage their risks.
“Where are we in the cycle? We’ve talked a lot about reduced volume, which tends to occur during the correction phase. Now, I’m giving the bulls a little edge to give you a full explanation. I stand very, very cautiously on the thin line on the thin ice. We’re in the bull, right? But the ice is cracking and we are about to fall.”
With the price of Bitcoin closing below $60,000, uncertainty and instability in the cryptocurrency market increased. This weakened the uptrend, creating the potential for a major bear trap. In his evaluation, Kyledoops emphasized the critical role of the 21 exponential moving average on the weekly time frame, which is an important indicator in the market. Maintaining this average could be an important sign for investors as it could signal a return to the old trading range as in the past.
However, although the Bitcoin price has tested these critical levels, it also carries the potential for a recovery between the 100 and 150-day moving averages, especially those observed in bull markets. This has led some investors to be cautious that the price may experience short-term corrections before rising further.
Short-term charts show that although there may be declines from time to time, the general trend is still upward. However, it should be noted that in a volatile asset like Bitcoin, correction declines ranging from 20% to 40% can occur with high volatility. According to the analyst, there is a risk that Bitcoin will fall to $ 44,000. However, such a move is expected to be short-lived and a rapid recovery is expected.
Finally, the analyst added: “If the weekly candle starts to close above $60,000, you can very quickly see how a major bear trap will emerge there.”
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