Bitcoin Threatens $104K ‘Rug Pull’ as Traders Anticipate Major Move Ahead

Bitcoin’s price has dropped below $105,000, raising concerns of a possible ‘rug pull’ at $104,000. Traders remain cautious amid volatility while also watching a potential recovery in the US dollar. Overall, market conditions are complex as geopolitical tensions linger without panic reactions.

Bitcoin is currently wading through some turbulent waters, especially as it recently broke below the $105,000 mark, hitting a low of around $104,401 right after the Wall Street open. This plunge is fueling speculation among traders about a significant move that could come soon. Many analysts interpret the pattern as a possible precursor to a ‘rug pull’ at the $104,000 level, which has the potential to trigger even more volatility in the market.

Traders have been trying really hard to maintain calm amidst the downturn, even as they encounter repeated signals of downward momentum. The crypto analysis platform, Material Indicators, noted that this situation could be evidence of manipulation in the Bitcoin market. They pointed out, “If price breaks below $105k, be prepared for a rug pull at $104k,” indicating that a rapid price drop could follow.

Interestingly, as Bitcoin struggles, the US dollar appears to be gearing up for a comeback after previously hitting lows not seen in three years. In the face of increasing geopolitical tensions, some traders—like the ever-watchful Skew—have suggested that Bitcoin bulls are showing a level of restraint not seen in earlier pullbacks. However, they acknowledge that volatility is lurking just around the corner.

In a recent post, Skew explained that despite a modest 3% pullback, the market isn’t panicking quite yet. He pointed out differences between the current situation and past downturns, where aggressive shorting and increased selling typically accompanied declines. He says, “So this means the big move has yet to occur & is brewing.”

Meanwhile, discussions surrounding the Middle East conflict are emerging with a sense of cautious optimism. The Kobeissi Letter, another popular trading analysis source, shared perspectives that downplayed fears of a broader conflict. They stated that despite ongoing tensions between Israel and Iran, the likelihood of a global conflict seemed slim, and market trends reflected that viewpoint. Oil prices have risen about 2%, and gold, while gaining ground, hasn’t triggered panic in traders.

The US dollar index (DXY), usually moving inversely to Bitcoin, is hinting at a rebound from its recent slump. Notably, asset managers appear to be heavily short on the dollar. As highlighted by trader Guilherme Tavares, this ominous positioning could lead to a significant rally in the index, especially since it’s currently lingering near critical support levels. Tavares noted, “The index is trading near a key support level, and the RSI (14) is deeply oversold, showing signs of bullish divergence.”

As we drill deeper into this evolving narrative, it’s clear that both Bitcoin and the dollar are at pivotal points. This volatility and uncertainty will likely keep traders and investors on high alert as they navigate these complex markets.

In summary, Bitcoin’s dip below $105,000 has sparked fears of a potential ‘rug pull’ at the $104,000 mark, with traders closely monitoring volatility ahead. Meanwhile, the US dollar shows signs of recovery after hitting lows, as geopolitical tensions remain high yet do not seem to be triggering panic. Ultimately, traders should stay vigilant, as the market conditions could shift swiftly, creating new challenges and opportunities.

Original Source: cointelegraph.com