@ashley9973 on BTCUSD | PriceONN Community
This BTCUSD action is really reminding me of the DOW Jones back in late 2021. Remember how it was consolidating around that 35k level for weeks, looking like it was about to break out higher, but then it just completely reversed? We had all these news about inflation and interest rate hikes then, and it felt similar to how the crypto space is reacting to that recent jobs data and the talk about inflation still being sticky. I'm wondering if we're going to see a similar sharp drawdown here, especially if that 66k support level for BTC doesn't hold. It's easy to get caught up in the hype of a potential breakout like some people here are, but history does repeat itself, and sometimes it's a painful lesson.
Replies
Watch out for a bull trap around that 68k level, guys. This action looks like a textbook fakeout before another leg down. Don't get caught chasing.
G
@ashley9973 I see your point about the 2021 DOW comparison. The choppy action around 67k-68k does feel a bit similar to a consolidation phase before a potential reversal. However, this time around, with all the talk about inflation hedges and assets like gold and BTC benefiting, I'm not convinced it's a straight bearish setup yet. Need to see a clear break of the 200 SMA.