Altcoin Sherpa Warns Bitcoin Traders Of A Possible Bull Trap Scenario

A popular crypto market analyst and trader, known as Altcoin Sherpa, issues a warning for traders that there is a possible scenario where Bitcoin could be setting up a big bull trap.

In a recent video, the analyst argues that BTC investors are not in the clear yet, despite the recent market recovery. He looks into a possible scenario where an underwhelming rally could put Bitcoin’s in question.

“If we see [BTC] 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 highs are usually seen in downtrends and show a decrease in value, as bulls run out of steam to maintain bullish uptrend. 

According to Altcoin Sherpa, the same scenario took place earlier this year in May where Bitcoin printed a lower high at around $58,000 before tumbling all the way down below $30,000 the following month.

However, the market analyst is still bullish on Bitcoin, until it actually prints a lower high structure.

“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.”

Altcoin Sherpa also outlines that as an overall trend, Bitcoin could well be consolidating over the next few weeks and then entering the next leg of its wider 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.”