Bitcoin Targets $25,000, But Is A Giant ‘Bull Trap’ Awaiting?
With Bitcoin (BTC) instantly touching $24,900 in the previous 24 hours, the flagship digital asset’s highest price in six months, investors are watching to see if it will break through the barrier at this level and trade above $25,000.
Currently, up to 49.5% in 2023, cryptocurrency trading specialist Michaël van de Poppe speculated on February 16 in a chirping that if Bitcoin can break $25,000, it is likely to rise to $30,000 and beyond as higher timeframe levels have one test and then markets begin to move higher, as investors short the correction.
“Corrections are relatively short-lived in a market with rising trends. Higher time frame levels get one test and then the markets start to shoot up as people exceed the correction. If we break $25,000, we will continue towards $30-35,000 for Bitcoin.
However, he warned that despite Bitcoin’s recent rise, the digital currency could be facing “the biggest bull trap” he has ever seen. He said this despite the fact that Bitcoin has climbed, “being fixated on one direction of the market can trick you into gigantic losses.”
Bitcoin price analysis
On Thursday, February 16, Bitcoin rallied and took the cryptocurrency market with it, seemingly unaffected by a stronger regulatory stance taken by the United States government.
Bitcoin is currently trading at $24,622, up 11.02% in the last 24 hours and 8.43% from last week. The total market capitalization of Bitcoin now stands at $475.2 billion after it added $46 billion to its market cap in 24 hours.
Interestingly, when it comes to the technical analysis (TA) indicators on financial tracking website TradingView, the 1-month sentiment gauges for Bitcoin are extremely bullish. The summary currently indicates a “strong buy” at 17, which is aggregated from oscillators in the “strong buy” range at 3 and the moving average (MA) which also points to a “strong buy” at 14.
There are growing indications that the market bottomed out in November and has since turned bullish as it appears to be picking up momentum, and people are brushing off any bearish news, both of which are traditional signals that many in the space feel the worst is over .
Although the current regulatory climate appears to be a headwind for the cryptocurrency industry, money seems to be flowing from altcoins to Bitcoin. In fact, BTC is the only cryptocurrency that has been labeled a “commodity” by the Chairman of the SEC. As a direct result of this, Bitcoin’s market dominance is steadily growing.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
