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Bitcoin Price Halts Its Rally — Is $10,000 Next or Is This a Bull Trap Back Below $6,000?

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  • Jack Thomas
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    After gaining almost $2,000 in seven days, Bitcoin has halted its rise with traders on tenterhooks to see if the coin picks up again or is a bull trap

Bitcoin Price Halts Its Rally — Is $10,000 Next or Is This a Bull Trap Back Below $6,000?
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ByBit
Contents

The last seven days have probably been the best for Bitcoin since December of 2017 with the major cryptocurrency putting on a good show of price gains. In the last seven days Bitcoin has gone from $5,600 to a high of nearly $7,500. However, this rally has halted a little as the price fell back down to the $7,000 floor.

The question now, as a new week dawns, is whether this latest rally is big enough to officially kick off a bull run, or if this is simply a bull trap. There is evidence to suggest that the major cryptocurrency could head up towards $10,000, but equally so, it could go to $4,300.

Retracting

The end of the weekend saw Bitcoin fall back around six percent, extinguishing some of its 25 percent of gains. This fall back is being seen as a correction as it stands, but because of the speed of the rally from $5,000 this movement can be called parabolic and a fall back is always expected.

A trader known as “Satoshi Flipper” explained that a potential Bitcoin retrace would be healthy for the asset, but does not see it dropping to the $4,000 region as some have claimed.

“I’ve been definitely vocal about a healthy BTC retrace, but I do not believe it will be a drastic 30 percent retrace back into the $4,000s. Once we form a local top, I believe we will 10 percent at the most, then settle down sideways,” the trader said.

However, one trader thinks Bitcoin may follow Fibonacci levels all the way back to $4,300.

Too bullish to stop?

While the rally may have stopped the party and the excitement about Bitcoin's potential to kick off a real parabolic rise to huge figures, it is probably all for the best in the end. This form of correction is healthy, but the next movement will be key.

A further move higher could initiate the next big bull run, but a correction lower will provide opportunity for more accumulation during this final shakeout.

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About the author

Jack Thomas is a journalist from Australia who has had a long career writing about finance and technology. He has combined his enthusiasm for these two subjects and applied his writing to covering blockchain and cryptocurrencies in the past few years.

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Reporting Illegal Crypto Fundraising Now Rewarded by Government Officials in China

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  • Alex Dovbnya
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    Sharing information about illegal ICOs with Chinese authorities could result in a financial reward

Reporting Illegal Crypto Fundraising Now Rewarded by Government Officials in China
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Those who decide to snitch on initial coin offerings are now rewarded by local authorities in China. 

Sina Finance, one of the largest business newspapers in China, has recently reported that Chinese authorities are extending their clampdown on illegal cryptocurrency fundraising. 

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