Progress or bull trap? Pundits weigh.

While Bitcoin (BTC) Having experienced a strong price pump to start the new year, many industry pundits are not convinced that the cryptocurrency will continue its upward trajectory — at least in the short to medium term.

Impressive price increase – who noticed BTC experiences 14 consecutive days of price increases earlier this month — has prompted many to consider whether the increase is a sign of significant “progress” or a sign of a “bull trap.”

Speaking to Cointelegraph on January 23, James Edwards, a cryptocurrency analyst at Australia-based fintech firm Finder, said the “bull trap” argument is stronger, warning that the recent surge could be “short-lived”. .

He said that while the price of BTC moved higher over the weekend, the NASDAQ Composite and the S&P 500 also made similar rallies:

“This suggests to me that the rally in crypto is not unique, and is instead part of a broader market development as inflation figures to stagnate and risk appetite returns to investment. So Bitcoin is just enjoying the effects of the positive sentiment that started elsewhere, which is likely to be short-lived.

Edwards added that cryptocurrency markets still have some “significant hurdles to clear before a new bull market begins.”

Among these obstacles, he mentioned persistent fallout. Termination of FTX And Recent Chapter 11 filing by Genesis January is 19.

“As such, we will see more sell-offs and downsizing as crypto firms adjust their balance sheets and dump tokens into the market to try to cover debt and keep up,” he said. explained.

In a statement to Cointelegraph, Bloomberg Intelligence Senior Commodity Strategist Mike McGlone was also skeptical of BTC’s price momentum, citing macroeconomic conditions such as a recession, saying BTC has too much to control. There is a big obstacle.

“With the world tilting toward recession and most central banks tightening, I think macroeconomic ebbing tides are still the primary headwind for Bitcoin and crypto prices.”

Cryptocurrency analyst and swing trader “Capo of Crypto” told his 710,000 Twitter followers on January 21 that BTC’s past resistance looks like the “biggest bull trap” he’s ever seen:

However, not all industry pundits were so bearish.

Cryptocurrency market analysis platform IncomeShark shared a “Wall St. Cheat Sheet” chart with its 379,300 Twitter followers on Jan. 22, mocking “bears” who believe the latest price movements are “bulls.” Trap” indicates. “

Sam Agterberg, CEO and co-founder of AI-based trading bot CryptoC recently shared A flood of posts expressing positive sentiment regarding BTC price action to his 431,700 Twitter followers, suggests that a “bull flag breakout” towards $25,000 may soon be on the cards:

Meanwhile, others have refrained from making price predictions, possibly given the unpredictability of crypto markets.

Related: Bitcoin price stability opens the door to upside for APE, MANA, AAVE and FIL.

Bitcoin (BTC) It is currently valued at $22,738, while the Bitcoin Fear and Greed Index currently stands at “Neutral” with a score of 50 out of 100. According to On alternative.me.

The cryptocurrency managed to break out of the “fear” zone on January 13 — with a score of 31 at the time — after BTC’s price rose for seven straight days.

Bitcoin market sentiment is expressed on a 0-100 “fear and greed index” scale. Source: Alternative.me.