Maybe the price of bitcoin (BTC) is hovering around its highest levels in monthsbut few are convinced that the bull market is back.
Awaiting a Key Weekly Close, BTC/USD Holds Near $21,000as shown by data from Cointelegraph Markets Pro and TradingView, and analysts fear the good times will end too soon.
Bitcoin will see a new “trough” before the bullish rally resumes
The bitcoin price is dividing opinions after a week of strong gains. Warnings of a possible pullback abound, while others are already commiserating with bears ahead of time..
“Now bears will get caught up in the vicious cycle of praying for pullbacks to lessen.not realizing that the tides have turned for a while and we’re going higher,” said Chris Burniske, former head of crypto at ARK Invest.
However, even the most optimistic views such as Burniske’s they do not expect the rallies to continue uninterrupted to finally end the last bitcoin bear market.
Uploading the classic “Wall Street Cheat Sheet” graphic over the weekend, popular commentator Lemon predicted that the BTC/USD pair would fall further.
“I’m sorry, I have to be true to my thoughts, I think we are here”, said to your Twitter followers, signaling that bitcoin sentiment—and the price—were heading towards macro lows.
That theory ties in with the more dismissive reactions to the latest BTC price bouncelike those of fellow commentator Il Capo of Crypto, who in recent days described it as “one of the biggest bull traps I’ve ever seen”.
“Despite the recent rebound, the bearish scenario has not been invalidated”wrote in part of a follow thread on twitter on January 14.
“If you have obtained benefits during these days, my most sincere congratulations, but remember that this is not a bad time to protect these benefits.”
concluded that a $12,000 macro low for BTC/USD was “still likely”.
Financing rates scare the mood
Returning to the data, Maartunn, a contributor to on-chain analytics platform CryptoQuant, warned that BTC price correction could come sooner rather than later.
Funding rates on derivatives platformshe wrote in a blog post on January 14, were reaching unsustainable levels.
“Funding rates for bitcoin hit a 14-month high”he pointed.
With positive rates, those who crave BTC are effectively paying to do sowhich indicates the popular belief that prices will continue to rise. This, in turn, can cause major disruption if price reacts contrary to consensus, triggering a cascade of sell-offs if support is broken.
“It is clear that traders are betting on higher prices. Nevertheless, analysis of the funding rates graph suggests that this may not be the caseMaartunn concludes.
On previous occasions when Funding Rates were as high as today, bitcoin has retraced.”
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