Bitcoin (BTC) is trading at its highest level in two months, but the phrase on every trader’s lips is “bull trap”.
After a 25% gain in a week, BTC/USD remains in doubt among Bitcoin bear market survivors.
Bitcoin bull trap fails to convince
It’s been called the “biggest bull trap” ever seen, and despite holding above $20,000, BTC’s price action isn’t fooling anyone.
This week, with Wall Street closed until Jan. 17, after-hours trading continues to support higher levels, but belief that they will last long is hard to find.
For those who have been watching the decline after decline throughout 2022, culminating in the FTX scandal, it is clear that it is very good that Bitcoin is now turning upside down.
That is the current result Cointelegraph’s dedicated Twitter poll asking market participants and other Twitter users whether the latest bull run has legs.
At the time of writing, only 38.6% of over 5,000 respondents believe this is the case, with the majority agreeing that $21,000 BTC/USD is a “bull trap”.
Running of the bulls or bull trap?
— Cointelegraph (@Cointelegraph) January 16, 2023
They are far from alone.
“By the time they realize that this pump is just a short squeeze and not a real purchase, it will be too late. Once again, the biggest bull trap I’ve ever seen.” – Popular account from Il Capo of Crypto wrote in a debate over the weekend.
Analyst Tony Guinea was similarly skeptical agreed With the description “Bull Trap”.
“People are passionate. You know what will happen next,” he said has addedhaving also predicted that BTC/USD will fall to $14,000 at some point in 2023.
“Incarnation of Disbelief”
Others, meanwhile, are less bullish in their market assessments but won’t rule out the possibility of the rally lasting.
Related to: BTC price reverses FTX losses; 5 things to know in Bitcoin this week
Partner seller Pentoshi predicted Last week, “a decent amount of volatility and sharp moves are all short-term,” while Jeff Ross, founder and CEO of Vailshire Capital Management, said “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.
Investor and entrepreneur Alistair Milne, a veteran of the Bitcoin markets, had a message for those still on the fence, however.
“Seeing a lot of ‘I don’t trust this rally’ or ‘this is a bull trap’ or ‘why does this make me uncomfortable’ in my feed,” he said. on Twitter on weekends.
“This is the epitome of the ‘unbelieving’ phase of the market cycle. Bitcoin bear markets end with meltdown rallies (usually 2x the low).
The accompanying graph shows the ever-popular Wall Street Cheat Sheet, where Milne argued that Bitcoin was at the start of a new bull run. As Cointelegraph reports, not everyone agrees, even on this issue.
At the time of writing, BTC/USD was trading at $20,800 on Bitstamp, data Cointelegraph Markets Pro and TradingView have shown.
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.
Comments