Recently, the crypto market has come to a standstill, Bitcoin is no exception. Experts hesitate to predict its further trajectory. Well-known trader Twitter Crypto Rand noted that “the situation with Bitcoin looks gloomy at the moment. I’m not taking positions for now. But I would be looking to add shorts on the flag retest after the potential breakdown. Always plan in advance to avoid emotional decisions.” On the one hand, the situation resembles the bull market at the end of 2015. The price is currently holding at the 100-week moving average indicating a possible new uptrend. The lowest border for the price is $7,600 and we can trace a bullish divergence there. Usually, it appears when the chart signals new lows and the indicator goes up. Most of the time, this divergence indicates that the downward trend is about to stop. Interestingly, in 2018 the bear market also sent similar signals of a trend reversal. The main reversal happened in December 2018 when a massive bullish divergence indicated that Bitcoin had reached the bottom. After that, the price gained momentum, temporarily stopping at $13,800 on June 26. To sum up, according to the overall market cycle, this can be defined as a potential bearish trap. From the macroeconomic point of view, the market is expected to retest several previous levels before extending the uptrend by 2020.
