The price of Bitcoin (BTC) surged to a higher place $18,000 on Nov. 29, reaching every bit high as $eighteen,209 on Binance. All the same, traders are turning cautious despite BTC'south weekend rally.

Bitcoin currently faces resistance at around $eighteen,200, which is too the 10-solar day moving average (MA) on the daily nautical chart. As Cointelegraph reported yesterday, some traders all the same anticipate BTC to see another drop in the virtually term before the rally can proceed.

BTC/USDT four-60 minutes chart (Binance). Source: TradingView.com

Why a bull trap for Bitcoin now?

A pseudonymous trader known as "Crypto Capo" predicted Bitcoin would meet a relief rally to $18,000 as it dropped to the $16,000 region.

On Nov. 27, when the price of Bitcoin was still hovering at around $sixteen,700, the trader said he is set up to brusque $eighteen,000.

He added that he is now starting to hedge at $18,100 with plans to cut the hedge if the trend reverses. In the virtually term, the trader noted that the first confirmation of a correction would exist a drop to $17,400. He said:

"Starting to build a hedge position. I don't want to sell some alts bags considering the entry was very good, and so hedge is a amend option here. Invalidation for the hedge is clear."

If Bitcoin continues to driblet beneath $17,400 and eventually $16,800, the trader said a driblet to the $14,000 region would get likely.

But, if Bitcoin rises in a higher place $eighteen,400 and consolidates at around $18,200, that would invalidate the surly structure. Crypto Capo also noted that consolidation above $19,000 would completely invalidate the bearish setup.

Potential Bitcoin bearish and bullish scenarios. Source: Crypto Capo

Another pseudonymous trader known every bit "Loma," who discussed a bullish structure for Bitcoin at $17,500, said he has cutting half of his long position.

The trader emphasized that BTC is nearing resistance every bit it looks to close its weekly and monthly candles. Considering that the $18,200-$18,400 area remains a resistance range, the trader said:

"Closed one-half of long at $eighteen,080~ Not looking to exist too overexposed into resistance coming into the weekly m/monthly closes. Lots of buying opportunities if nosotros do pause $eighteen.four~ Non a lot of selling opportunities if we don't."

At that place is a counter bullish scenario for BTC

A technical analyst called "CryptoBirb" said that Bitcoin typically faces two types of correction: 15% and 30%.

The analyst said that he expects a pullback to $14,000, but also noted that this is not guaranteed. He pinpointed diverse technical indicators, including BTC beingness in oversold territory for the first fourth dimension since the rally began. He wrote:

"There are two major $BTC correction types: -fifteen% & -xxx% declines. While anticipating~14k region, I noticed it'southward the first return to the hateful and first oversold bullish momentum cross since the rally started - VERY potent signal. Wouldn't listen ATH before Christmas. Who'southward with me."

The bullish scenario for Bitcoin would still require BTC reclaiming $eighteen,400 and consolidating above information technology to ostend the new back up levels.

Popular trader filbfilb, meanwhile, said that he is currently in cash every bit market uncertainty is calling for increased risk management.

"In the event of a breakdown below $15K and a flip of previous support into resistance, that may present a straightforward brusque opportunity," he wrote on Lord's day in his weekly newsletter.