Even though Bitcoin price has been on the rise recently, some remain skeptical that a correction is really underway, instead viewing the current upswing as a bull trap rather than a breakout signaling the end of the bear market.
Despite this, the largest cryptocurrency has maintained its recent gains and seems to continue shocking market watchers.
What Experts Think
According to James Edwards, a cryptocurrency analyst at Finder, a fintech company based in Australia, the case in favor of a bull trap is becoming stronger, and he cautions that the latest spike may only be temporary. Edwards continued by saying that the markets for cryptocurrencies still have a number of big obstacles to overcome before a new bull market can start.
The cryptocurrency analyst and trader known as Capo of Crypto tweeted on January 21 to his 710,000 followers that the surge of Bitcoin beyond resistance seems to be the largest bull trap he has ever seen.
Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, is also pessimistic about the direction of the Bitcoin price. He cites macroeconomic circumstances that are similar to a recession as being an obstacle that is too great for Bitcoin to overcome.
However, that tipping point has not yet come into existence. At the closing of the most recent weekly candle, Bitcoin was trading at over $22,800, representing its highest performance since the summer of last year.
On the other hand, BTC miners have benefited greatly from the 2023 Bitcoin price increase. Miners that ended 2022 with a positive balance are benefiting from the rise in Bitcoin price and the network’s hashrate, which is strengthening their businesses.
Meanwhile, on-chain signals continue to point to the fact that a bullish official status has been achieved by the king coin.