Analysts send mixed messages on Bitcoin Bull Trap retreat trap scenario
Bitcoin prices rose over the weekend, continuing the rise that began with the new year.
Bitcoin has now achieved a 45% gain since its last cycle low of $15,665 on November 22, 2022.
There are growing fears of a sudden retreat trap called the bull trap “Bitcoin Bull Trap” although the height still shows its strength.
The bull trap is a reversal of trend that forces market participants out of positions with unexpected losses.
Bitcoin markets have been trending lower since late 2021, with bitcoin still far from its peak of 67%.
But since the beginning of 2023, bitcoin’s price has sent more positive signs that the downward trend could be reversed.
Concerns about bitcoin bull trap:
The analyst and trader called “il Capo Of Crypto” said on Twitter that recent market moves appeared to have been manipulated without real demand.
He tweeted:
It’s the biggest bull trap I’ve ever seen.
With the world economy in dire straits, the looming recession and the lack of income available to invest in risk asset classes, it seems somewhat premature to call it an upward market so far.
More sentiment seems to be driving towards a bull trap scenario, with patterns like this appearing in Tradingview:
Others reposted the market psychology chart that pops up during each bear market.
Others consider that we have already finished the bear market as the famous analyst and chart holder “PlanB” remains confident that the bear market will end, tweeting:
When the price moves off 50% lows, that’s no longer a bull trap, it’s a movement you missed.
Bitcoin forecast:
Bitcoin trades at the time of publication of the article for $22,722.
On January 23, bitcoin reached an intraday high of $23,262, its highest since mid-August.
Resistance recorded in September was broken, indicating that speculators on the rise had not yet lost their power.
The price of bitcoin has risen 35% over the past seven days and is currently at its highest level in five months.
With the total market value of cryptocurrencies approaching $1.1 trillion again, things on the upside appear to be Monday morning.
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