Many analysts are of the opinion that the bottom is already in. The price of BTC that has traded between $18k-24k in the last 6 weeks seems to have bounced on July 28, clearing the $24k mark once again.
Despite the excitement, a market analyst, Crypto Capo, said that it is a bull trap that would suck many investors in.
A Bull Trap
According to a Twitter post made by the analyst, “it is one of the biggest bull traps of the year”
Responding to a newsletter founder who offered 7,700 likes to the analysis, Crypto Capo wrote:
“I wouldn’t use the likes of any account to determine market sentiment. Funding rates, leverage ratio, CVD and other indicators show that most people are buying into resistance.”
He advises that investors use a simple rule of ascertaining that their portfolios have a substantial volume of stablecoins at a time like this.
A Buy Into Resistance
While Crypto Capo maintains that investors are already “buying into resistance” another analysts, Noirbit says that the Bull trap extends to the $30k region. He added that altcoins would do 4-10x.
There seems to be a consensus among analysts that since the US is officially in a recession after two consecutive quarters of negative GDP, that the coin market wouldn’t react independent of the global economic realities.
According to JackForLife,
“I agree on bull trap, we cant be in such a bad economic situation with all this market growing, cant be right”
WhiteDot, a 2018 crash survivor is even more assertive in their belief that this is another bull trap. According to him,
“2 years till next halving, world economy in shit and half of big crypto players liquidated … Do you really think bear market is over? Think twice…”
Todd Hockney added his view,
“Hate to break it to you. This is a recession like no other. Everyone is so well capitalized going into this. Recession means fed will stop hiking and start cutting sooner. And because of well capitalized players, recession may be short. Either way, good for risk on assets.”
There are a few analysts that actually believe that the bottom is in.
TAnalyst, Founder/CEO @XORSTRATEGY and Former Prof. of Mathematical Logic, Aurelien Ohayon, believes that the bottom is in for the coin market. According to him,
“BITCOIN IS READY FOR A MASSIVE BULL RUN.”