Cryptocurrency expert and analyst Cheds warns that the recent rise in the second-largest memecoin Shiba Inu (SHIB) may be designed to trap bulls who bought in anticipation that the rally will continue. He also assessed the current outlook for Bitcoin (BTC).
Warning about Shiba Inu's "gathering trap"
Anonymous cryptocurrency analyst Cheds said that Shiba Inu is currently experiencing a macro downtrend that could lead to its rise. The analyst said that this rally could shake up SHIB bulls who are waiting for the leading memecoin’s uptrend to reverse and trigger an isolated bull run, saying that “SHIB has achieved a strong rebound in a strong downtrend. A big drop may soon follow.”
Chez also added that bulls have begun to show signs of exhaustion following a possible breakout top on the four-hour price chart. The analyst also said that if SHIB rises above $0.00001075, the expectation of a downtrend would be invalidated, confirming that the uptrend will continue.
Shiba Inu is currently in an upward trend that started after reaching a low of $0.0000054 in June. Dogecoin, the largest memecoin competitor, is currently trading at $0.000009244, down 3.75% in the past 24 hours.
Good news for Bitcoin: It may 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 forming. The analyst said, “BTC students should note that the $28,612 low (August 1) should be enough to meet the first requirement of a mean reversal. Going forward, you can consider this a notable drop, increasing the importance of this price area.”
Cheds 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 could begin a slow rise.
CoinMarketCap data shows that BTC is trading at $29,106, up 0.20% in the past 24 hours.
