Bitcoin Price at Crucial Point: Bull Run or Bull Trap?

Bitcoin (BTC) took another big jump just before the weekend, rising from $20,500 to a peak around $23,350. Since then, bitcoin has been slowly falling and briefly dipped to $22,400 last night. The price then made a small bounce and hovered between $20,650 and $20,800 overnight. At the time of writing, bitcoin is trading at $22,715 on Binance and $20,850 on Bitvavo.

This puts the bitcoin price down 0.9% today. The trading volume fell by 24% in the past 24 hours. The total market capitalization is $438 billion and the dominance is 41.9%. The Fear & Greed Index comes out at 50 (Neutral).

Analysts divided on bitcoin, much disbelief about rise

There is still a lot of disbelief in the market about bitcoin’s recent surge. Analysts seem very divided on whether this is the start of a new one bull run or whether it is just a temporary one bear rally went.

According to the CryptoQuant analyst below, bitcoin is at a crucial point and is currently testing long-term bearish resistance. If the BTC price breaks through this, it could mean the end of the downward trend, according to the analyst.

However, if it fails to break through this resistance, it seems likely that bitcoin will fall sharply again and in the meantime the analyst sees miners and short-term holders selling again.

Bitcoin whales have hit hard

At first, the whales seemed to be very quiet as the rally started shortly after the turn of the year, but now they appear to be awakening. Whales have bought as much as 70,000 BTC, worth about $1.4 billion, over the past two weeks, according to data from analytics firm Santiment, Ali Martinez reports.

Bitcoin (and crypto) will therefore perform significantly better than other markets in 2023, as IncomeSharks points out below:

Is it a bitcoin bull trap?

Nevertheless, the bearish Il Capo Of Crypto maintain that it is a so-called “bull trap”. According to him, there is not yet a “real question” to be seen.

Also the Crypto Insiders community on Instagram is not yet fully convinced of the recent increase. The majority (55%) also think it is a bull trap:

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Fed and macro

The market now seems to be waiting for what the Federal Reserve, the US central bank, decides next week. Markets currently expect the Fed to raise rates by 0.25% on February 1.

Still, we also have interesting data to watch this week, as Investing.com reports. The so-called earnings season persevere and this week major players such as Tesla, Microsoft and Intel will present their figures. This week also includes US PCE inflation and GDP data that may already provide insight into what the Fed will do.

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