Bitcoin (BTC) is trading at its highest levels in over two months, but the phrase on every trader’s mouth is “bull trap”.
After generating a 25% return in a single week, BTC/USD remains under suspicion among Bitcoin bear market survivors.
The Bitcoin bull trap is not convincing
It’s been called the “biggest bull trap” ever, and despite holding above $20,000, BTC’s price action is fooling no one.
This week, with Wall Street closed until January 17, after-hours trading continues to support higher levels, but it is hard to find faith that these will stick around for long.
For those who watched drop after drop throughout 2022, culminating in the FTX scandal, it seems simply too good to be true that Bitcoin will now turn bullish.
That is the current result of Cointelegraph Dedicated Twitter Poll asking market participants and other Twitter users if the latest bull run has legs.
At the time of writing, only 38.6% of the 5,000+ respondents believe so, with most agreeing that 21,000 BTC/USD is a “bull trap.”
Bullfight or bull trap?
— Cointelegraph (@Cointelegraph) January 16, 2023
They are far from alone.
“By the time they realize this pump is just a small squeeze and not an actual purchase, it will be too late. Once again, the biggest bull trap I have ever seen”, popular account Il Capo de Crypto wrote in a debate over the weekend.
Similarly skeptical was analyst Toni Ghinea, who also agreed with the description of “bull trap”.
“People are optimistic. You already know what happens next. aggregatealso having foretold that BTC/USD would drop to $14,000 sometime in 2023.
“The very epitome of disbelief”
Others, meanwhile, are less adamant in their assessments of the market, but won’t settle for the chances of the rally lasting.
Related: BTC Price Cancels FTX Losses: 5 Things To Know About Bitcoin This Week
Pentoshi Merchant Fellow forecasted “a decent amount of volatility and wild moves each way in the short term” last week, while Jeff Ross, founder and chief executive of Vailshire Capital Management, said “only time will tell.”
“Regime change or bull trap?” he consulted as BTC/USD approached its first weekly close above the 200-day moving average in months.
However, investor and entrepreneur Alistair Milne, a veteran of the Bitcoin markets, had a message for those who are still undecided.
“I see 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. tweeted on the weekend.
“This is the very epitome of the ‘disbelief’ stage of a market cycle. Bitcoin bear markets end with face-melting rallies (typically 2x from lows).”
An accompanying chart featured the ever-popular “Wall Street Cheat Sheet,” with Milne arguing that Bitcoin was at the start of a new bull run. As Cointelegraph reported, not everyone agrees, even on this.
At the time of writing, BTC/USD was trading at $20,800 on Bitstamp, data from Cointelegraph Markets Pro and TradingView presented.
The views, thoughts and opinions expressed here are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
