Bitcoin Price Breakout or Bull Trap? Twitter has 5K Votes
The price of bitcoin may be reaching new highs every month, but almost no one is certain that the current favorable conditions will persist.
Bitcoin is trading at its highest levels in more than two months, yet the word “bull trap” is on everyone’s lips right now.
Bitcoin bear market survivors continue to be skeptical about BTC/USD even though it has delivered gains of 25% in only one week.
Bitcoin bull trap fails to convince
The price behavior of Bitcoin is not deceiving anybody, even though it stays over $20,000 while being branded the “largest bull trap” ever seen.
Even though Wall Street is closed until January 17, out-of-hours trading has continued to maintain higher levels this week. However, it is difficult to trust that current levels will remain stable for a considerable amount of time.
If you have been following the price of Bitcoin throughout the year 2022 and have seen it go through a series of declines that culminated in the FTX controversy, the notion that it would now enter a positive trend may seem too good to be true.
This is the current result of a special Twitter poll being conducted by Cointelegraph. The survey asks market players as well as regular users of Twitter if the most recent bull run has legs.
At the time of this writing, just 38.6% of almost 5,000 replies feel that it does, with the bulk of respondents saying that $21,000 BTC/USD is a “bull trap.”
“The minute that they discover that this pump is simply a quick squeeze and not actual purchasing, it will already be too late for them,” In a discussion that took place over the weekend, the popular account Il Capo of Crypto said that “once again, the largest bull trap I’ve ever seen.”
Analyst Toni Ghinea had a similar pessimistic perspective and said that the situation resembled a “bull trap.”
“Most individuals have an optimistic outlook. You already know what’s going to happen next,” he said, adding that he had also forecast that the BTC/USD exchange rate will drop below $14,000 at some point in the year 2023.
“The very epitome of disbelief”
Others, on the other hand, are less definitive in their market assessments but would not be pulled on the likelihood of the rise lasting.
Last week, a fellow trader named Pentoshi predicted “a reasonable degree of volatility and significant movements both ways in the immediate term,” while Jeff Ross, founder, and CEO of Vailshire Capital Management, remarked that “only time will tell.”
As the BTC/USD pair got closer to achieving its first weekly closing above the 200-day moving average in many weeks, he questioned if the market was undergoing a regime transition or a bull trap. “Regime change or bull trap?”
Alistair Milne, an investor, and entrepreneur who has been active in the Bitcoin markets for some time, has some words of advice for people still on the fence about cryptocurrency.
“Seeing a lot of ‘I don’t trust this rally’ or ‘this is a bull trap’ or ‘why does this make me uneasy,'” he tweeted over the weekend. “I’m not sure I can trust this rally.”
“This perfectly exemplifies what it means to be in the ‘disbelief’ stage of the market cycle. Bear markets in Bitcoin are followed by “face-melting rallies,” which are commonly defined as a twofold increase from their respective lows.
An accompanying graphic displayed the ever-popular “Wall Street Cheat Sheet,” on which Milne argued that Bitcoin was at the beginning of a new bull run in price. According to the article by Cointelegraph, not everyone agrees, even on this matter.
According to information obtained from Cointelegraph Markets Pro and TradingView, the price of one bitcoin in US dollars was trading at $20,800 on Bitstamp at the time this article was written.
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