Crypto Bulls May Be Falling into a Bull Trap, Warns Analyst
A popular crypto strategist believes that cryptocurrency bulls are falling into a trap as traders anticipate a potential sell-off event. The Flow Horse, an anonymous analyst, expressed caution despite the recent liquidation event in the market. He suggests that many participants remain bullish on Bitcoin and crypto, which could be a setup for a major sell-the-news event.
Potential Impact of Bitcoin ETF Approval
The analyst’s warning may be in reference to the approval of spot market Bitcoin exchange-traded fund (ETF) applications. Experts have been wary of the impact this approval could have on BTC’s price. Chris Burniske, founder of Placeholder Capital, believes that the event is unlikely to be bullish for Bitcoin. He predicts that rejections would result in a sell-off while approvals would only attract those who already anticipated the news.
Possible Price Decline for Bitcoin
The Flow Horse also suggests that Bitcoin’s price could drop below $40,000. He believes that the market needs to go lower, around $38,000-$39,000, to engage more participants. Currently, Bitcoin is trading at $40,994.
Hot Take: Crypto Bulls Beware!
Crypto bulls should exercise caution as they may be walking into a bull trap. Traders appear to be optimistic about Bitcoin and crypto despite the recent liquidation event. The potential approval of Bitcoin ETFs could trigger a major sell-off rather than drive prices higher. Analysts warn that rejections would lead to selling pressure while approvals may not attract new buyers immediately. Moreover, there is a possibility of Bitcoin’s price dropping below $40,000 in order to entice more market participants. Stay vigilant and monitor market developments closely.
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