Bitcoin value surge: Breakthrough or bull lure? Pundits weigh in

Whereas Bitcoin (BTC) has skilled a powerful value pump to kick off the brand new 12 months, many business pundits should not satisfied the cryptocurrency will proceed its upward trajectory — at the very least within the quick to mid-term. 

The spectacular value surge — which noticed BTC expertise 14 days of consecutive value will increase earlier this month — has referred to as on many to think about whether or not the surge marks a major “breakthrough” or is indicative of a “bull lure.”

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

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

“This means to me that the rally in crypto isn’t 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 results of constructive sentiment that originated elsewhere. That is prone 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 current Chapter 11 submitting by Genesis on Jan. 19.

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

In an announcement 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 large of a barrier for BTC to beat.

“With the world leaning into recession and most central banks tightening, I believe 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 appears to be like like “the largest bull lure” he has ever seen:

Nonetheless, not all business pundits have been as bearish.

Cryptocurrency market evaluation platform IncomeSharks appeared bullish, having shared a “Wall St. Cheat Sheet” chart with 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 lure.”

Sem Agterberg, the CEO and co-founder of AI-based buying and selling bot CryptoSea, additionally not too long ago shared a flood of posts expressing constructive sentiment towards BTC value motion to his 431,700 Twitter followers, suggesting {that a} “BULL FLAG BREAKOUT” towards $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 value consolidation opens the door for APE, MANA, AAVE and FIL to maneuver larger

On the time of publication, Bitcoin was priced at $22,738, whereas the Crypto Concern and Greed Index was at “Impartial” with a rating of fifty out of 100.

The cryptocurrency managed to interrupt out of the “Concern” 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 “Concern & Greed Index” scale. Supply: Crypto Concern & Greed Index.