After making 25% returns in one week, BTC/USD remains a suspicion among the Bitcoin bear market survivors.
Bitcoin bull trap fails to convince
It has been called the “biggest bull trap” of all time, and while it is holding above $20,000, BTC’s price action is not fooling anyone.
This week, with Wall Street closed through January 17th, off-hours trading continues to support higher levels, but it’s hard to find confidence that these levels will hold for long.
For those who have been observing one drop after another throughout 2022, culminating in the FTX scandal, it seems too good to be true that bitcoin will now flip upwards.
This is the current result of Cointelegraph’s 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 more than 5,000 respondents believe that $21,000 BTC/USD is a “bull trap.”
They are far from alone.
“The moment they realize this is just a short squeeze and not a real buy, it will already be too late. Once again, the biggest bull trap I have ever seen,” famous account Il Capo of Crypto wrote in a debate over the weekend.
Equally skeptical was analyst Tony Guinea, who similarly agreed with the “bull trap” description.
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“People are bullish. You know what happens next,” he also predicted that BTC/USD could drop to $14,000 sometime in 2023.
“Example of unbelief itself”
Meanwhile, others are less stringent in their market assessments, but won’t be drawn in by the prospects of a continued rally.
Related: BTC Price Cancels FTX Losses – 5 Things To Know In Bitcoin This Week
Fellow trader Bentoshi predicted “a decent amount of volatility and sharp moves in every short-term direction” last week, while Jeff Ross, founder and CEO of Vailshire Capital Management, said, “Only time will tell.”
Regime change or bull trap? he wondered as BTC/USD approached its first weekly close above the 200-day moving average in months.
Veteran of the bitcoin markets, investor and entrepreneur Alistair Milne had a message for those still on the fence.
“Seeing so many ‘I don’t trust this rally’ or ‘This is a bull trap’ or ‘Why does this make me uncomfortable’ on my feed,” he tweeted over the weekend.
“This is the epitome of the ‘disbelief’ phase of the market cycle. Bitcoin bear markets end with face-melting highs (usually 2x from their lows).”
The accompanying graphic showed the ever-famous “Wall Street cheat sheet,” in which Milne said bitcoin was at the beginning of a new bull run. As Cointelegraph reported, not everyone agrees, even on this one.
At the time of writing, BTC/USD is trading at $20,800 on Bitstamp, data from Cointelegraph Markets Pro and TradingView shows.