Crypto expert and analyst Cheds warned that the recent rally of the second-largest memecoin Shiba Inu (SHIB) may be an attempt to trap bulls who are buying in anticipation of the rally continuing. He also evaluated the current outlook for Bitcoin (BTC).
Warning of “Rally Trap” for Shiba Inu
Anonymous crypto analyst Cheds stated that Shiba Inu is currently experiencing a downward trend in the macro, which may cause it to rise. According to the analyst, the rally could potentially shake SHIB bulls who are waiting for the leading memecoin’s upward trend to reverse and trigger an isolated bull run, saying “SHIB made a strong bounce in a strong downward trend. A major drop could be coming soon.”
Cheds also added that bulls have started showing signs of exhaustion after potentially recording a blow-off top on the four-hour price chart. The analyst also stated that if SHIB rises above $0.00001075, the expectation of a downward trend will be invalidated, confirming that the upward trend will continue.
Shiba Inu is currently in the middle of its upward movement that began after reaching its lowest level of $0.0000054 in June. The rival of the largest memecoin Dogecoin is currently trading at $0.000009244, down 3.75% in the last 24 hours.
Good News for Bitcoin: It Could Start Rising Again
Cheds, who turned to Bitcoin after SHIB, believes that the largest cryptocurrency’s drop to around $28,600 could be a local bottom formation. The analyst stated, “BTC students should note that the low level of $28,612 (on August 1st) should be enough to meet the first call for an average reversal. Going forward, you can consider this a significant drop that adds importance to this price zone.”
Cheds had predicted last month that Bitcoin would drop to the $28,500 range before ending its correction period. The analyst also noted that after reaching the downside target, the largest cryptocurrency will likely start rising slowly.
CoinMarketCap data shows that BTC traded at $29,106, up 0.20% in the last 24 hours.
