The global crypto market cap raised above $1.1 trillion as Bitcoin registers a notable growth beyond $24,000. Ethereum surged beyond $1700 while the other altcoins have also turned out to be bullish registering decent gains. While some believe the resurgence of a recovery phase has begun, many foresee a huge bull trap ahead.
Is the current surge reliable? Will BTC’s price continue with its upside swing to achieve the target levels close to $30,000?
The FED rolled out updated interest rates, hiked by 75bps recently which gave a huge push to the entire crypto market. On the other hand, the economy of the US has shrunk for the second consecutive quarter, recording negative values.
Hence the fear of recession deepens with the GDP declining by 0.2% in Q2 after dropping 0.4% in Q1. In such a case, the upswing may be just another bullish trap laid out.
One of the popular analysts who has been quite bearish on the Bitcoin price for a pretty long time has again warned citing it as the ‘biggest bull trap’ of the year.
On the other hand, Bitcoin is neither holding above $24,000 nor rejecting these levels that may display a preparedness for a bullish trend. But it is expected to test the resistance, cross the channels and wait for the indicators to change market psychology.
Therefore, the Bitcoin price may be bullish in the short term. But beyond mid-term or long-term, the BTC price is still within a huge bearish well.
Currently, the volatility is comparatively less and hence a steady upswing may be well-positioned. But in the mid & long term, the Bitcoin(BTC) price is extremely volatile and in such conditions, the asset may be primed to drop even if it surges by a large margin.