A closely followed analyst says that Shiba Inu’s (SHIB) latest rally could be a setup to trap bulls wanting to long the memecoin.
Pseudonymous analyst Cheds tells his 311,700 Twitter followers that Shiba Inu is currently witnessing a surge within a macro downtrend.
According to the analyst, the rally will likely trap SHIB bulls who are expecting the top memecoin to reverse its trend and ignite an isolated bull run.
“SHIB strong bounce in a strong downtrend. May be setting up for a short here soon.”
Cheds says that bulls are starting to show signs of exhaustion after potentially printing a blow-off top on the four-hour chart. He also says that his bearish stance will be invalidated if SHIB rallies above $0.00001075.
Shiba Inu is currently in the midst of a strong upward move after printing its 2023 low of around $0.0000054 in June. At time of writing, the Dogecoin (DOGE) competitor is worth 0.00001013, up over 14% in the last 24 hours.
Looking at Bitcoin (BTC), Cheds says that the crypto king may have already printed a local bottom after falling to around $28,600.
“BTC students should note that (the August 1st) low of $28,612 should be enough to satisfy the initial call for a mean reversion.
Going forward, consider it a throwback which now adds importance to that price zone.”
Late last month, Cheds predicted that Bitcoin would fall to the $28,500 range before ending its corrective period. The analyst also said that BTC will likely go on a slow grind-up after hitting his downside target.
At time of writing, Bitcoin is worth $29,089.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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