Bitcoin Bull or Bubble? The Debate
Bitcoin (BTC) had a significant price increase at the start of the new year.
However, some experts are still determining if the cryptocurrency will maintain its upward trend in the near to medium term. The significant price increase of BTC, with 14 consecutive days of price rises earlier this month, has sparked debate among many as to whether it marks a significant "breakthrough" or is simply a Bitcoin bull trap.
Experts opinions on the potential for a Bitcoin bull trap
On January 23, James Edwards, a cryptocurrency analyst from the Australian fintech company Finder, told Cointelegraph that the possibility of a "bull trap" is increasing and that the recent surge in the market could be temporary. He explained that as a result, we would see more companies selling off assets as they try to manage their debt by releasing tokens onto the market and remaining financially stable.
Edwards stated that several significant obstacles must be overcome before a new bull market in cryptocurrency can start.
According to Bloomberg Intelligence Senior Commodity Strategist Mike McGlone, the primary obstacle for Bitcoin and cryptocurrency prices is the global economic recession and tightening policies by central banks. He also stated that the macroeconomic ebbing tide is still the primary headwind for Bitcoin and crypto prices.
On January 21, cryptocurrency analyst and swing trader "Capo of Crypto" warned his 710,000 Twitter followers that the past push resistance for BTC looked like "the biggest bull trap" he has ever seen.
IncomeSharks has a positive outlook, and they shared a chart titled "Wall St. Cheat Sheet" to its 379,300 Twitter followers on January 22, mocking those who believe that the recent price movements are a sign of a "bull trap".
Recently, Sem Agterberg, the CEO and co-founder of CryptoSea, suggested a possible "Bull Flag Breakout" towards $25,000 may be imminent. His series of tweets expressed a bullish sentiment toward BTC price action.
Some individuals have chosen not to predict the future price of Bitcoin due to the market's volatility.
What does the Fear and Greed Index say?
According to Alternative.me, the current value of Bitcoin (BTC) is $22,738 and the Bitcoin Fear and Greed Index is at a neutral level with a score of 50 out of 100. On January 13, the cryptocurrency broke away from the "Fear" zone, recorded at 31, as the BTC price rose for seven consecutive days.
Author: Harsh Verma
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