Bitcoin bounced off a new local low at $24,920 to create a $1,000 short squeeze, and Kyle of Crypto Banter thinks it is a significant move that could impact Bitcoin traders’ behavior. According to Kyle, several members of the Crypto Banter community do not trust this price pump. Most of them consider it a bull trap.
In a recently uploaded video, Kyle showed many crypto posting significant gains in the one-hour timeframe. However, from a daily chart perspective, most coins sit in the red zone. The Crypto Banter host noted that traders need to be careful during such moments to avoid being trapped on the wrong side of the trade.
Kyle referenced a post by Ryan Selkis, a crypto analyst on X (formerly Twitter), who said the crypto market is approaching maximum pain. According to Selkis, the bear markets last longer and go deeper than traders want. Hence, there is a need for a couple of capitulations, then “chop, and rebirth.” The analyst noted that the current bear market is near the worst sentiment he had ever seen, even worse than 2019. He thinks it is more correlated to what happened in 2015.
Kyle recalled that in 2015, Bitcoin encountered a double-bottom scenario. According to him, Bitcoin made new lows, then had an extreme relief rally, very similar to what is seen now, and then swept the lows one more time.
The Crypto Banter host employed the Gaussian channel indicator while analyzing the current Bitcoin market. He noted that the market remained in a bear trend despite the recent rally that puts Bitcoin price in the green region. However, Kyle identified certain key levels that breaking below them could result in Bitcoin prices dropping significantly. Those levels include the middle of the Gaussian channel at $24,559 and the lower level at $20,889.