Bitcoin is experiencing a short-term wave of optimism; however, analyst Crypto Patel warns of a potential bull trap.
Current State of Bitcoin
Bitcoin shows temporary growth; however, according to Crypto Patel, caution is necessary: 'Bitcoin isn't fully bullish until it breaks and closes above $108,900.'
Market Fundamentals Support the Warning
Patel points to key support levels based on historical data. Additionally, the sharp 29% drop in Bitcoin's hashrate could negatively affect the market. He states, 'smart money is shorting the $107,000–$109,000 zone.'
Technical Analysis and Social Sentiment
While many retail traders are driven by hype, sentiment analysis reveals a neutral-to-bearish tone. Patel believes that a break above $110,654 is needed to change the current trend.
With upcoming mining difficulty adjustments and rising geopolitical tensions, Patel recommends that traders remain vigilant and consider key resistance levels.
