Analysts Give Conflicting Advice On The Bitcoin Bull Trap Scenario

Key Points:

• Bitcoin prices increased, continuing the uptrend that started with the new year. Since the asset’s cycle low of $15,665 on November 22, it has increased by 45%.
• Since late 2021, the price of bitcoin has been declining, and the asset is still 67% below its peak. This pattern may well persist throughout this year.
• Others reposted that market psychology chart that pops up during every bear market.

Over the weekend, bitcoin prices increased, continuing the uptrend that started with the new year. Since the asset’s cycle low of $15,665 on November 22, it has increased by 45%.

Nevertheless, despite the rally still appearing to be strong, there are growing concerns of a bull trap. A trend reversal known as a “bull trap” compels market participants on the wrong side of the price movement to close out bets at a loss.

Since late 2021, the price of bitcoin has been declining, and the asset is still 67% below its peak. This pattern may well persist throughout this year.

Analyst and trader “il Capo Of Crypto,” said the recent market movements looked manipulated with no real demand. It is “the biggest bull trap I’ve ever seen,” he exclaimed over the weekend.

With the global economy in a dire state, a looming recession, and very little disposable income for investing in risk asset classes, it does seem a little premature to call it a bull market just yet.

The does appear to be more sentiment leading towards the bull trap scenario, however, with patterns such as this one appearing on Tradingview.

Others reposted that market psychology chart that pops up during every bear market.

The bulls countered with an observation of how much prices had moved off the floor.

“When price has moved 50% off the lows it’s not a bull trap anymore, it’s a move that you have missed.”

Popular analyst and chart guru ‘PlanB’ remains confident that the bear market is over.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

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