Yi Lihua, founder of Liquid Capital, said that the recent short-term upward breakout in Bitcoin could be a “bull trap,” but the main uptrend on the daily chart has not yet been broken.
According to Yi Lihua, the current pullback in the cryptocurrency market can be considered a correction within the ongoing upward channel on the daily chart. Therefore, Lihua states that the current movement does not yet signify a trend reversal, and that the short-term price action presents a typical false breakout pattern.
The most important level highlighted by the analyst was $82,000. Yi Lihua stated that if Bitcoin holds the $82,000 level, the current correction could end and the uptrend could resume. Conversely, he warned that a larger-scale pullback in the market could occur if the $82,000 support level is lost.
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Liquid Capital had stated in its assessment a few days ago that it would not attempt to profit from short-term speculation or capture the final phase of the uptrend during the current pullback. Instead, the company explained that it would wait for new, clearer, and more confident opportunities to emerge.
On the other hand, according to Coinglass data, a total of $326 million worth of leveraged positions were liquidated in the cryptocurrency market in the last 24 hours. Of this amount, $196 million consisted of long positions and $130 million consisted of short positions.
Bitcoin is trading at around $83,020 at the time of writing, having lost 0.47% in value over the past 24 hours.
*This is not investment advice.