The global crypto market cap rose above $1.1 trillion as bitcoin registered a remarkable rise to over $24,000. Ethereum surged beyond $1700, while other altcoins have also emerged bullish, posting decent gains. While some believe a revival of the recovery phase has begun, many are anticipating a bigger bull trap ahead.
Is the surge current reliable? Will BTC price continue its upward move to achieve the target level near $30,000?
FED recently introduced updated interest rates, which increased by 75bps, which gave a big push to the entire crypto market. On the other hand, the US economy shrank for the second quarter in a row, recording negative values.
Therefore, after falling 0.4% in Q1, the fear of recession deepens with GDP falling by 0.2% in Q2. In such a case, the bounce could be just another bullish trap.
One of the popular analysts, who has been quite bearish on the price of bitcoin for quite some time, has warned again, calling it the ‘biggest bull trap’ of the year.
Bitcoin, on the other hand, is neither above $24,000 nor rejecting these levels which may indicate readiness for a bullish trend. But expect it to test resistance, cross channels and wait for the indicators to change market psychology.
Therefore, the price of bitcoin could be bullish in the near term. But after the medium term or longer term, BTC price is still in a major bearish zone.
At present, volatility is comparatively low and hence a steady uptrend can be in good stead. But in the medium and long term, the price of bitcoin (BTC) is extremely volatile and in such situations, the asset can be prone to fall even if it rises by a large margin.