$10,000 Bull Trap? Why Bitcoin Price Is Now Likely to Pull Back

Bitcoin price was once again sideways last week with price action between bulls and bears proving to be equal.

Scenarios look likely for Bitcoin as we approach the month of May comes to a close?

Starting out on the monthly, we can see that Bitcoin grew in value by nearly 25% in the month of May. This is always a nice thing to see.

For more immediate price movement expectations, we need to drill down to the lower time frames to see what may be in store over the coming week.

Bitcoin is not only flagging bullish on the weekly and monthly, but it is looking poised to cross bullish on the daily MACD. It almost seems like a trap, as conditions like this on this particular indicator are what dreams are made of.

Taking a look at the daily time frame, we can see that Bitcoin broke down below the previous upward trend line last week, and the price has since continued to range through the previous support level, making it difficult to determine which direction the price wants to go.

After such a big increase in price over the last eight weeks, a pullback is somewhat inevitable.

Using the fib retracement levels on the daily chart, it gives us an idea of the levels to expect Bitcoin to hit should it pullback towards the midpoint of the descending channel.

Should the price retrace beyond $8,613, only then would $7,400 look like a realistic bottom.

From a bullish perspective, breaking $9,800 could put Bitcoin on a path to $11K and then on to $13,800.