After multi-month highs bitcoin price excitement is at best limited, as Bitcoin traders fear a return to macro lows.
Bitcoin may be hovering around its highest levels in months, but few believe the bull market has returned.
Ahead of a crucial weekly close, the BTC/USD exchange rate stays above $21,000, according to data from TradingView, with experts fearful that the good times may soon end.
After a week of rapid increases, Bitcoin has divided views. There are several warnings of a likely decline, while some are already consoling bearish in advance.
“Now bearish will be locked in a vicious loop of wishing for pullbacks to go lower, not recognising that the tides have turned and we’re headed higher,” summed up Chris Burniske, former head of crypto at ARK Invest.
Even the most bullish forecasts, like those of Burniske, do not envision Bitcoin’s most recent bear market going indefinitely upward.
By uploading the traditional “Wall Street Cheat Sheet” picture over the weekend, the well-known analyst Lemon anticipated that BTC/USD will continue to decline.
“Sorry, but I have to be honest with you, I believe we are here,” he warned his Twitter followers, indicating that Bitcoin sentiment and price are approaching macro lows.
Such a view is consistent with the more pessimistic comments about the most recent BTC price bounce, such as Il Capo of Crypto’s description of it as “one of the largest bull traps I’ve ever seen.”
“Despite the current rebound, the bearish picture has not been discredited,” he remarked on Twitter on January 14.
If you have gained earnings recently, please accept my heartfelt congratulations, but remember that now is not a terrible moment to safeguard them. He stated that a BTC/USD macro bottom of $12,000 was “still probable.”
Maartunn, a contributor to the on-chain analytics site CryptoQuant, cautioned that the BTC price correction might occur sooner rather than later, based on statistics.
In a blog post dated January 14, he said that funding rates on derivatives markets had reached unsustainable levels.
“Bitcoin Funding Rates reached a 14-month high,” he added. Positive rates indicate a widespread view that prices will continue to climb. In the event that the price reacts contrary to the consensus, a cascade of liquidations may ensue if support is breached.
“It is evident that dealers are counting on price increases. However, analysis of the Funding Rates chart indicates that this may not be the case,” said Maartunn. In the past when Funding Rates were as high as they are now, Bitcoin saw a decline.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.