Bitcoin rebounds off 6-week lows amid warning of ‘brutal’ BTC price bull trap

Bitcoin (BTC) reclaimed $39,000 on April 27 after another night of pain saw BTC/USD hit its lowest levels since mid-March.

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

“All assets suffer” at hands of rampant dollar

Data from Cointelegraph Markets Pro and TradingView showed the largest cryptocurrency trading at $39,200 on Bitstamp at the time of writing, up 2.5%.

Tuesday had seen fresh trouble as soon as Wall Street trading began, Bitcoin following stocks downhill once again to hit $37,700 twice.

Despite that area already being on the radar as a liquidity grab opportunity, some were far from convinced that the sell-off was done.

The current relief, popular trader Kaleo argued, was simply a form of a dead-cat bounce and the real pain would begin when momentum faltered.

“Well, this price action on Bitcoin isn’t shouting too much for upside, at this point. Tricky as it’s giving back every upwards push again,” Cointelegraph contributor Michaël van de Poppe added.

As throughout the week, the U.S. dollar showed no signs of aborting its bull run, adding pressure to crypto as U.S. dollar currency index (DXY) challenged multi-decade highs set in March 2020.

“The DXY is reaching higher than my base case, due to policymaker decisions outside of my base case,” Economist Lyn Alden wrote in a Twitter thread about the phenomenon.

“Therefore, we need to be aware of the market issues that occur when this happens. It’s no milkshake (eg US increases rates and gets equity buy-in) but rather, all assets suffer.”

U.S. dollar currency index (DXY) 1-week candle chart. Source: TradingView

TradFi and crypto feel the fear

Nerves among crypto and traditional traders alike were thus plain to see, reflected in plummeting market sentiment.

Related: Bitcoin repeats rare weekly chart signal that resulted in 50% BTC price dips

The Crypto Fear & Greed Index reached its lowest level since April 12, which at 21/100 represented “extreme fear” as the guiding market mood.

Crypto Fear & Greed Index (screenshot). Source:

Its traditional market counterpart, the Fear & Greed Index, until recently lagging crypto in “neutral” territory, also fell into line, recording 27/100 or “fear” on Wednesday.

Fear & Greed Index (screenshot). Source: CNN

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should conduct your own research when making a decision.

All Dutch and English crypto news!

Crypto recap 16 mei: El Salvador, Nigeria en de Bitcoins van Terra (LUNA)

In deze video behandelt Axel de laatste ontwikkelingen in de crypto markt. Dit doet hij met de onderbouwing van nieuwsberichten en technische analyses. Op deze...

Top 5 cryptocurrencies to watch this week: BTC, MANA, MKR, ZEC, KCS

Bitcoin (BTC) has been relatively calm during the weekend as crypto traders try to rebuild the markets after the Terra LUNA debacle. With macro factors...

Celsius Network’s crypto mining subsidiary SEC filing suggests plans for IPO

Celsius Mining, the mining subsidiary of crypto lending platform Celsius Network, has filed paperwork with the United States Securities and Exchange Commission, or SEC, suggesting...

Analysts flag Bitcoin price levels to watch after LFG sells 80K BTC

Bitcoin (BTC) needs to hold current levels and work to reclaim higher ones to avoid a crash in the $20,000 range, the latest analysis warns.  BTC/USD...

Beste exchanges

Koop je crypto bij Bitvavo