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Bull trap? Bitcoin makes up for slump and $ 48,200 now key level

Bitcoin (BTC) made up for its losses on August 25 after a brief decline towards $ 47,000.

BTC / USD 1-hour candle chart (Bitstamp). Source: TradingView

Recovery or Bull Trap?

Data from Cointelegraph Markets Pro and TradingView show that the BTC / USD pair has climbed back to higher levels very quickly.

At press time, the pair was trading at just under $ 48,700, making up for $ 1,500 in a matter of hours.

Analysis already indicated a recovery, although there were lower lows on the hourly chart. Volume and RSI contributed to this improvement.

“Looks good so far”, says the dealer Scott Melkerafter observing the development of the RSI.

However, the trader and analyst Rekt Capital said it was too early to celebrate. Bitcoin must definitely rise above $ 48,000 again, he warned.

“BTC is signaling a small recovery,” he says Twitter commented on a chart.

“But if $ BTC can’t hit the red / blue levels again anytime soon, this rebound has been just a relief rally that turns previous supports into new resistance.”

BTC / USD 1-day chart with annotated candle (Coinbase). Source: Rekt Capital / Twitter

Big picture dispels the doubts

Otherwise, the bullish sentiment persists.

Related: Bitcoin bullish crossover: $ 225,000 possible

PlanB, the creator of the stock-to-flow model, reiterated that the 200-week moving average and the realized market capitalization of Bitcoin are at an all-time high.

“Nobody who has bought Bitcoin and held it for four years (200 weeks) has ever lost money,” he says Twitter explained. To do this, he also uploaded a chart.

BTC / USD chart with 200-week moving average and realized market capitalization. Source: PlanB / Twitter

Bitcoin has never fallen below the 200-week moving average. It has never fallen below its delta exchange rate, which is currently at $ 15,200. The analyst William Clemente already declaredthat the delta rate is the difference between average market capitalization and realized market capitalization.

The delta price is mostly a definitive support and is only tested at the lowest point of bear markets.

Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.


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