Crypto analyst and economist Alex Krüger says that Bitcoin bears are in for some pain after BTC’s strong rebound in the last 24 hours.
In a new tweet, Krüger tells his 87,500 followers that yesterday’s move below $30,000 was designed to shake out weak hands and trap bears.
“BTC trend reversed (again), leaving a bear trap below. The chart is NOT a head and shoulders (H&S). Those pitching the head and shoulders [pattern] are either tripping to confirm their bias, or playing psy ops on you. A head and shoulders [pattern] has a neckline connecting all three peaks. Not the case here.”
A head and shoulders formation is a technical analysis pattern that signals a large trend reversal. In a bull market, a confirmed breakdown from the pattern signals the beginning of a bear cycle.
Krüger, however, contests that Bitcoin’s current market structure does not resemble the head and shoulders formation as the shoulders are disconnected from the head.
With the big bear trap in place, the economist believes momentum has swung to the side of the bulls.
“It’s a range, my friend. Now expect continuation higher, but you already missed half the move or so… Likely a good time to stay on the sidelines. Unless willing to question your views very often, let the summer be… Yes, I think [BTC will] continue higher
While Kruger believes that Bitcoin is poised for a move up, he says he would like to see a reduction in exchange inflows to decrease selling pressure.
“Bitcoin exchange inflows have almost tripled in the last two months. That speaks of panic selling spot holdings. Would like to see those inflows start to diminish now.”
Featured Image: Shutterstock/alphaspirit.it