Bull Trap? Bitcoin Price Slides Below $7K Despite Strong Indicators

Bitcoin dropped below $7000 a few minutes before press time in a move that could turn out to be a bull trap.

The leading cryptocurrency closed yesterday (as per UTC) above the trendline sloping downwards from the March 5 high and May 5 high, confirming a long-term bearish-to-bullish trend change.

However, the follow-through has been disappointing. As of writing, BTC is changing hands at $6,965 on Bitfinex – down 3.5 percent on a 24-hour basis.

The negative price action reminds us of a failed long-term bullish breakout of July, although the latest bull reversal looks sustainable, according to technical studies.

Daily chart

As seen in the above chart, bitcoin’s move above the falling channel hurdle (or falling trendline) on July 24 trapped the bulls on the wrong side of the market.

On that fateful day, BTC had crossed the long-term falling trendline hurdle to print a high of $8,507 only to fall back below the psychological support of $6,000 by mid-August.

The bull breakout was…