Breakthrough or bull trap? Pundits weigh in

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Whereas Bitcoin (BTC) has skilled a robust value pump to kick off the brand new yr, many trade pundits will not be satisfied the cryptocurrency will proceed its upward trajectory — not less than within the brief to mid-term. 

The spectacular value surge — which noticed BTC experience 14 days of consecutive price increases earlier this month — has referred to as on many to contemplate whether or not the surge marks a big “breakthrough” or is indicative of a “bull entice.”

Chatting with Cointelegraph on Jan. 23, James Edwards, a cryptocurrency analyst at Australian-based fintech agency Finder mentioned the argument for a “bull entice” is stronger, warning the current surge may very well be “short-lived.”

He said that whereas the BTC value moved upwards over the weekend, the NASDAQ Composite and the S&P 500 additionally made related rallies:

“This implies to me that the rally in crypto shouldn’t be distinctive, and as a substitute a part of a wider market uplift as inflation figures stall and a risk-on urge for food seems to return to investments. So Bitcoin is simply having fun with the consequences of optimistic sentiment that originated elsewhere. That is more likely to be short-lived.”

Edwards added that cryptocurrency markets nonetheless have some “important hurdles to clear earlier than a brand new bull market can start.”

Amongst these obstacles, he talked about embrace the continued fallout over FTX’s collapse and the recent Chapter 11 filing by Genesis on Jan. 19.

“As such, we’ll see additional sell-offs and downsizing as crypto companies regulate their steadiness sheets and dump tokens onto the market to cowl debt and attempt to keep afloat,” he defined.

In a press release to Cointelegraph, Bloomberg Intelligence Senior Commodity Strategist Mike McGlone wasn’t assured within the BTC value trajectory both, citing recessionary-like macroeconomic circumstances as too massive of a barrier for BTC to beat.

“With the world leaning into recession and most central banks tightening, I feel the macroeconomic ebbing tide continues to be the first headwind for Bitcoin and crypto costs.”

The sentiment was additionally shared amongst some on Crypto Twitter, with cryptocurrency analyst and swing dealer “Capo of Crypto” telling his 710,000 Twitter followers on Jan. 21 that BTC’s push previous resistance seems like “the most important bull entice” he has ever seen:

Nonetheless, not all trade pundits had been as bearish.

Cryptocurrency market evaluation platform IncomeSharks appeared bullish, having shared a “Wall St. Cheat Sheet” chart to its 379,300 Twitter followers on Jan. 22 making a mockery of the “Bears” who assume the most recent value actions are indicative of a “bull entice.”

Sem Agterberg, the CEO and co-founder of AI-based buying and selling bot CryptoSea additionally lately shared a flood of posts expressing optimistic sentiment in direction of BTC value motion to his 431,700 Twitter followers, suggesting {that a} “BULL FLAG BREAKOUT” in direction of $25,000 could quickly be on the playing cards:

In the meantime, others have shunned making a forecast on the value, probably given the unpredictability of crypto markets.

Associated: Bitcoin price consolidation opens the door for APE, MANA, AAVE and FIL to move higher

Bitcoin (BTC) is presently priced at $22,738, whereas the Bitcoin Worry and Greed Index is presently at “Impartial” with a rating of fifty out of 100, according to Various.me.

The cryptocurrency managed to interrupt out of the “Worry” zone on Jan. 13 — which was then scored at 31 — after the BTC value elevated for seven consecutive days.

Market sentiment of Bitcoin expressed on a 0-100 “Worry & Greed Index” scale. Supply: Alternative.me.