While Bitcoin (BTC) has experienced a strong rate pump to kick off the new year, numerous market pundits are not encouraged the cryptocurrency will continue its upward trajectory– at least in the short to mid-term.
The remarkable rate surge– which saw BTC experience 14 days of consecutive price increases previously this month– has contacted many to think about whether the rise marks a substantial “advancement” or is a sign of a “bull trap.”
Speaking to Pandoraland on Jan. 23, James Edwards– a cryptocurrency expert at Australian-based fintech firm Finder– stated the argument for a “bull trap” is more powerful, alerting the recent rise might be “temporary.”
He specified that while the BTC price moved up-wards over the weekend, the NASDAQ Composite and the S&P 500 also made similar rallies:
“This recommends to me that the rally in crypto is not special, and instead part of a broader market uplift as inflation figures stall and a risk-on appetite appears to go back to investments. So Bitcoin is simply delighting in the results of positive sentiment that originated somewhere else. This is likely to be short-lived.”
Edwards added that cryptocurrency markets still have some “substantial obstacles to clear before a brand-new bull market can begin.”
Among those obstacles, he pointed out include the ongoing fallout over FTX’s collapse and the recent Chapter 11 filing by Genesis on Jan. 19.
“As such, we’re going to see further sell-offs and scaling down as crypto firms adjust their balance sheets and dispose tokens onto the marketplace to cover debt and attempt to stay afloat,” he explained.In a statement
to Pandoraland, Bloomberg Intelligence Senior Commodity Strategist Mike McGlone wasn’t confident in the BTC price trajectory either, citing recessionary-like macroeconomic conditions as too big of a barrier for BTC to conquer.
“With the world leaning into recession and most reserve banks tightening up, I think the macroeconomic ebbing tide is still the main headwind for Bitcoin and crypto costs.”
The sentiment was likewise shared amongst some on Crypto Twitter, with cryptocurrency expert and swing trader “Capo of Crypto” informing his 710,000 Twitter fans on Jan. 21 that BTC’s push past resistance looks like “the biggest bull trap” he has ever seen:
I’ve been checking charts all this time, preventing sound from Twitter. The way the upward motion is happening, the way htf resistances are being checked … it plainly looks controlled, no genuine demand.Once again, the most significant bull trap I’ve ever seen. However they will not trap me.– il Capo Of Crypto (@CryptoCapo_)January 21, 2023 However, not all industry pundits were as bearish.
Cryptocurrency market analysis platform IncomeSharks appeared bullish, having actually shared a”Wall St. Cheat Sheet”chart with its 379,300 Twitter fans on Jan. 22 making a mockery of the bears who think the most recent rate movements are a sign of a”bull trap.”#Bears at the Denial phase.”It’s just a bull trap”
action to his 431,700 Twitter fans, recommending that a”BULL FLAG BREAKOUT”towards $25,000 might soon be on the cards.Meanwhile, others have actually refrained from making a projection on the rate, most likely given the unpredictability of crypto markets.Here’s my technical analysis of where Bitcoin’s rate is going. pic.twitter.com/cOFueErgGq!.?.!— Dan Held(@danheld )January 21, 2023 Related: Bitcoin rate debt consolidation opens the door for APE, MANA, AAVE and FIL to move higher At the time of publication, Bitcoin was priced at$22,738, while the Crypto Fear and Greed Index was at”Neutral”with a score of 50 out of 100. The cryptocurrency managed to break out of the”Fear “zone on Jan. 13– which was then scored at 31– after the BTC rate increased for 7 successive days. Market belief of Bitcoin expressed on a 0-100″Fear & Greed Index”
scale. Source: Crypto Fear& Greed Index.
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