Bitcoin price surge: Breakthrough or bull trap? Pundits weigh in
Whereas Bitcoin (BTC) has skilled a powerful value pump to kick off the brand new yr, many trade pundits usually are not satisfied the cryptocurrency will proceed its upward trajectory — at the least within the quick to mid-term.
The spectacular value surge — which noticed BTC expertise 14 days of consecutive value will increase earlier this month — has known as on many to think about whether or not the surge marks a big “breakthrough” or is indicative of a “bull lure.”
Talking to Cointelegraph on Jan. 23, James Edwards — a cryptocurrency analyst at Australian-based fintech agency Finder — stated the argument for a “bull lure” is stronger, warning the latest surge may very well be “short-lived.”
He said that whereas the BTC value moved upwards over the weekend, the NASDAQ Composite and the S&P 500 additionally made related rallies:
“This means to me that the rally in crypto isn’t distinctive, and as a substitute a part of a wider market uplift as inflation figures stall and a risk-on urge for food seems to return to investments. So Bitcoin is simply having fun with the results of constructive sentiment that originated elsewhere. That is more likely to be short-lived.”
Edwards added that cryptocurrency markets nonetheless have some “vital hurdles to clear earlier than a brand new bull market can start.”
Amongst these obstacles, he talked about embody the continued fallout over FTX’s collapse and the latest Chapter 11 submitting by Genesis on Jan. 19.
“As such, we’re going to see additional sell-offs and downsizing as crypto corporations regulate their stability sheets and dump tokens onto the market to cowl debt and attempt to keep afloat,” he defined.
In a press release to Cointelegraph, Bloomberg Intelligence Senior Commodity Strategist Mike McGlone wasn’t assured within the BTC value trajectory both, citing recessionary-like macroeconomic circumstances as too large of a barrier for BTC to beat.
“With the world leaning into recession and most central banks tightening, I believe the macroeconomic ebbing tide continues to be the first headwind for Bitcoin and crypto costs.”
The sentiment was additionally shared amongst some on Crypto Twitter, with cryptocurrency analyst and swing dealer “Capo of Crypto” telling his 710,000 Twitter followers on Jan. 21 that BTC’s push previous resistance appears to be like like “the most important bull lure” he has ever seen:
I have been checking charts all this time, avoiding noise from Twitter. The best way the upward motion is occurring, the best way htf resistances are being examined… it clearly appears to be like manipulated, no actual demand.
As soon as once more, the most important bull lure I’ve ever seen. However they will not lure me.
— il Capo Of Crypto (@CryptoCapo_) January 21, 2023
Nonetheless, not all trade pundits have been as bearish.
Cryptocurrency market evaluation platform IncomeSharks appeared bullish, having shared a “Wall St. Cheat Sheet” chart with its 379,300 Twitter followers on Jan. 22 making a mockery of the bears who assume the newest value actions are indicative of a “bull lure.”
#Bears on the Denial stage. “It is only a bull lure” “It is all manipulation”. Ready for the Panic half subsequent… pic.twitter.com/Lo6nWyZPD2
— IncomeSharks (@IncomeSharks) January 22, 2023
Sem Agterberg, the CEO and co-founder of AI-based buying and selling bot CryptoSea, additionally not too long ago shared a flood of posts expressing constructive sentiment towards BTC value motion to his 431,700 Twitter followers, suggesting {that a} “BULL FLAG BREAKOUT” towards $25,000 could quickly be on the playing cards.
In the meantime, others have shunned making a forecast on the worth, seemingly given the unpredictability of crypto markets.
This is my technical evaluation of the place Bitcoin’s value goes. pic.twitter.com/cOFueErgGq
— Dan Held (@danheld) January 21, 2023
Associated: Bitcoin value consolidation opens the door for APE, MANA, AAVE and FIL to maneuver increased
On the time of publication, Bitcoin was priced at $22,738, whereas the Crypto Worry and Greed Index was at “Impartial” with a score of fifty out of 100.
The cryptocurrency managed to interrupt out of the “Worry” zone on Jan. 13 — which was then scored at 31 — after the BTC value elevated for seven consecutive days.
