Bitcoin (BTC) is trading at its highest level in over two months, but the expression on every trader’s lips is bull trap.
After a 25% return in a single week, BTC/USD remains suspect for Bitcoin bear market survivors.
Bitcoin Bull Trap is not convincing
It has been dubbed the “biggest bull trap” ever seen, and while it holds above $20,000, BTC price action fools no one.
This week, with Wall Street closed until Jan. 17, after-hours trading continues to support higher levels, but it’s hard to believe these will last long.
For those who have watched fall after fall throughout 2022, culminating in the FTX scandal, it just seems too good to be true that Bitcoin is about to turn bullish.
That’s the latest result from Cointelegraph’s dedicated Twitter poll, which asks market participants and other Twitter users if the recent bull run has legs.
At the time of writing, only 38.6% out of over 5,000 responses believe this to be the case, with the majority agreeing that $21,000 BTC/USD is a “bull trap.”
Bull run or bull trap?
— Cointelegraph (@Cointelegraph) January 16, 2023
You are far from alone.
“By the time they realize this pump is just a quick squeeze and not a real purchase, it will already be too late. Once again the biggest cop trap I’ve ever seen,” Crypto’s popular report Il Capo wrote in a debate over the weekend.
Similarly skeptical was analyst Toni Ghinea, who also agreed with the “bull trap” description.
“People are optimistic. You know what happens next,” he added, after also predicting that BTC/USD would drop to $14,000 sometime in 2023.
“The Epitome of Unbelief”
Others, however, are less categorical in their market views, but will not count on the chances of a sustained rally.
Related: BTC price reverses FTX losses – 5 things to know in Bitcoin this week
His peer Pentoshi last week forecast “a decent level of volatility and strong moves both ways imo in the near term,” while Jeff Ross, founder and CEO of Vailshire Capital Management, said that “only time will tell.”
“Regime change or bull trap?” he asked as BTC/USD neared its first weekly close above the 200-day moving average in months.
Nonetheless, investor and entrepreneur Alistair Milne, a veteran of the Bitcoin markets, had a message for those still on the fence.
“I see a lot of ‘I don’t trust this rally’ or ‘this is a cop trap’ or ‘why am I uncomfortable with this’ on my feed,” he tweeted over the weekend.
“This is the epitome of the ‘disbelief’ phase of a market cycle. Bitcoin bear markets end with stunning rallies (usually 2x from lows).”
An accompanying chart showed the ever-popular Wall Street Cheat Sheet, in which Milne argued that Bitcoin was at the beginning of a new bull run. As Cointelegraph reported, not everyone agrees on this either.
At the time of writing, BTC/USD is trading at $20,800 on Bitstamp, data from Cointelegraph Markets Pro and TradingView showed.
BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView
The views, thoughts, and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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