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A closely followed crypto strategist and trader is putting Bitcoin investors on notice as he outlines a scenario where BTC could set a big bull trap.
In a new strategy session, pseudonymous trader Altcoin Sherpa says that BTC investors are not yet out of the woods after the recent bounce as he sees a possible outcome where an underwhelming rally could put Bitcoin’s uptrend in question.
“If we see [Bitcoin] make this lower high ($68,000), at that point, this is where I’m starting to get worried. If it’s making a lower high than what we see back established in early November, from the $69,000 area, if we see a lower high at this point, that’s when I’m starting to get pretty concerned because that’s when you can see market structure shift a little bit.”
A lower high is a bearish setup indicating that bulls have run out of steam and can no longer sustain the uptrend.
Altcoin Sherpa highlights that the same scenario happened earlier this year where Bitcoin printed a lower high in May around $58,000 before tumbling all the way down below $30,000 in June.
However, until Bitcoin prints a lower high structure, the crypto analyst remains bullish in the leading cryptocurrency.
“I still believe this is a bullish market structure, and I still believe that we are going to do very well in the coming months.”
The crypto strategist adds that he sees Bitcoin consolidating over the next few weeks before igniting the next leg of its bull cycle.
“So from a health perspective of the overall trend, what you want is just to see something like just chop around for a while and the move up so kind of late December is my overall projection for when the price will start to move.”