that managed to maintain its rise over the weekend. bitcoinmanaged to surpass the $23,000 levels. BTC has managed to rise 45% since its low of $15,665 on November 22.
On the other hand, although the rally continues to show signs of strength, the fear of the ‘bull trap’ remains alive. A bull trap represents a trend reversal that causes participants to abandon positions after unexpected losses.
Bitcoin price has been in a downtrend since the end of 2021 and is still trading 67% off its peak price. This trend seems likely to continue throughout the year.
Bitcoin Bull Trap Fear
The popular analyst, known by the pseudonym Capo, stated that the recent movements may have been manipulated without any real demand. Capo described it as “the biggest bull trap I’ve ever seen”. commented.
I’ve been checking charts all this time, avoiding noise from Twitter. The way the upward movement is happening, the way htf resistances are being tested… it clearly looks manipulated, no real demand.
Once again, the biggest bull trap I’ve ever seen. But they won’t trap me.NEWS CONTINUES BELOW
— il Capo Of Crypto (@CryptoCapo_) January 21, 2023
In a world where macroeconomic developments have not improved and the global recession is still at play, investments in “risk assets” are also expected to be low. For this reason, there is still the possibility that the latest developments may be a bull trap.
However, with formations like these popping up on Tradingview, there seems to be more sentiment heading towards the bull trap scenario.
— BitcoinAgile (@bitcoinagile) January 23, 2023
Others reposted the market psychology chart that appears in every bear market.
— IncomeSharks (@IncomeSharks) January 22, 2023
The bulls responded with an observation of how far prices have moved from the bottom.
‘PlanB’ is confident the bear market is over.
WOW! Bitcoin price above short term holder (STH) and realized price. AND .. STH, realized and 2Y realized price are all increasing again. Further proof that the bear is over and the bull market has started🚀
More explanation of this chart in this video:https://t.co/NgzaiQ81Zw pic.twitter.com/z3UrePtoRO
— PlanB (@100trillionUSD) January 22, 2023
BTC Price Prediction
Bitcoin is trading at $22,787 after 24-hour consolidation. On January 23, it managed to climb as high as $23,262, its highest price level since mid-August.
Resistance at the previous September high has been broken, indicating that the bulls are not yet out of strength.
BTC has gained 33.5% in the last seven days and is at a five-month high. Things look bullish this Monday morning, with the total crypto market capitalization approaching $1.1 trillion again.