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Rising Bitcoin Prices: cryptocurrency Bearish breakthrough or Bull Trap?

ASTL Token Project > Blog > Rising Bitcoin Prices: cryptocurrency Bearish breakthrough or Bull Trap?

Bitcoin (BTC) experienced a massive price spike at the start of the new year. The impressive 14-day bull run earlier this month left many wondering if the move was a significant “breakout” or a bull trap. Many industry experts are unsure if the cryptocurrency will continue its upward trajectory, at least in the short to medium term.

Specifically, ASTL investment project CFO Konstantinas Sizovas, said the bull trap argument is stronger, warning that the recent surge may be “short-lived.” He stated that while the price of BTC was rising over the weekend, the NASDAQ Composite and S&P500 also showed similar gains: are stalling and risk appetite seems to be returning to investors. So Bitcoin is just enjoying the positive sentiment effects that have taken place elsewhere. So the rally is likely to be short-lived.” Sizovas added that there are still “significant hurdles to be overcome in the cryptocurrency markets before another bull market begins.” Among those hurdles, he mentioned the ongoing fallout from FTX’s collapse and the January 19 bankruptcy filing for Genesis. “Therefore, we will see further selloffs and cutbacks as crypto firms adjust their balance sheets and throw tokens into the market to cover debt and try to stay afloat,” he explained.

Bloomberg Intelligence senior commodities strategist Mike McGlone was also unsure of BTC’s upward price trajectory, citing recession-like macro conditions as too much of a barrier for BTC to break through. “With the world leaning towards recession and most central banks tightening measures, I think the macro downturn is still the main drag on bitcoin and crypto prices.”

This view is shared by some experts on crypto twitter, where cryptocurrency analyst and swing trader “Capo of Crypto” told his 710,000 followers on January 21 that BTC’s break through resistance looks like the “biggest bull trap” he has ever seen: “All this time I’ve been checking the charts avoiding the noise from Twitter. The way the up move is happening, the way the high performance resistances are being tested… it clearly looks like manipulation, no real demand. Once again, the biggest bull trap that I ever seen But they won’t catch me2, tweeted Il Capo Krypto Jan 21, 2023

However, not all industry experts were equally bearish. Cryptocurrency market analysis platform IncomeSharks is much more optimistic, sharing a “Wall Street Cheat Sheet” chart with its 379,300 Twitter followers on Jan. 22, poking fun at “bears” who think recent price movements are indicative of a “bull trap”. Sem Agterberg, CEO and co-founder of the AI-powered trading bot CryptoSea, also recently shared a flood of messages expressing positive sentiment towards BTC price action to his 431,700 Twitter followers, suggesting that a “bullish breakout” towards $25,000 could coming soon: “Meanwhile, others have held off on price predictions, likely given the unpredictability of the crypto markets. Here’s my technical analysis of where Bitcoin’s price is heading,” wrote Dan Held on January 21, 2023.

Bitcoin (BTC) is currently worth $22,738 and the Bitcoin Fear and Greed Index is currently at “Neutral” with a score of 50 out of 100, according to Alternative.me. Cryptocurrency managed to break out of the “fear” zone on January 13, gaining 31 points, after the price of BTC rose for seven days in a row.

In the current difficult conditions, investors need to be able to directly and prospectively invest fiat and cryptocurrency assets in projects that provide a stable income that obviously exceeds inflationary expectations and is not subject to any sanctions, blocking and confiscation. The ASTL project is a simple and elegant solution for potential investors – an investment in the development of the real sector of a diversified portfolio of cryptocurrencies, with a fairly high ROI (up to 12% annually) with payments in stablecoin (USDT).

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