The year 2023 shows, at least in part, the new investor sentiment in the Bitcoin market. according to CoinMarketCap, the total market capitalization of cryptocurrencies is currently at $846.4 billion. Only down 1% from yesterday’s market capitalization of $853.9 billion.
This surge in market value can be attributed to recent bullish price action in the market. Based on data by CoinGeckoThe main cryptocurrencies Bitcoin and Ethereum all experienced an increase in price with BTC even breaking through the resistance level of $17,000.
This trend increases in prices, however, is not continuous accordingly CryptoCapo.
A prominent crypto expert who correctly predicted the fall of Bitcoin (BTC) in 2022 believes that the current market rise may be a bull trap.
Image: Warrior Trading
A bull trap happens when a trader or investor buys an asset that breaks the resistance level; this is an approach that is often based on technical analysis. Despite the fact that most breakouts are followed by substantial gains, security can quickly make a U-turn.
Now, even though Bitcoin exceeds $17,000, a pseudonymous analyst known in the industry as Capo tweets to his 698,800 followers that he anticipates a market correction.
The Spotlight Is on Bitcoin
With the crypto king leading the charge, CryptoCapo’s view of Bitcoin is still bearish. The new one tweet read:
“Zoom out. Ask yourself: why did I buy here? Is it because of FOMO? You see random altcoins have random pumps, they have happened since the beginning of the downtrend, and you feel the need to buy. You can think of this as a base.
However, this sentiment was met with pushback. According to one user, Bitcoin has followed a four-year market cycle. If this cycle is not broken by BTC, this year will be a period of accumulation that precedes next year’s bull market.
But then there is the question of whether this rally led by BTC is sustainable. according to CoinGecko, all major gainers in the current rally of random altcoins as mentioned by CryptoCapo. But with the market anticipating a advisable macroeconomic situation, the rally of “random altcoins” may continue in the next few days.
This is one of our newest Capos tweets:
Crypto And Macro And How They Are Intertwined
Macroeconomic indicators have an impact on the cryptocurrency market. CryptoCapo, however, looks bearish on the macro side as he predicts that the S&P 500 will have. apart bearish episode before the recovery.
BTC total market cap at $331 billion on the daily chart | Chart: TradingView.com
With the Consumer Price Index (CPI) data will be released this week, it remains to be seen whether the macro supports this crypto rally. But with Bitcoin facing stronger resistance at $17,552, this rally that the entire market has been following may be in danger of a major correction.
Long term, if BTC continues to follow the four-year market cycle, the rally led by Bitcoin will bring huge benefits to the crypto market.
In the short to medium term, however, investors should keep an eye on the CPI data released this week because it will determine the stance of the US Federal Reserve on the market.
-Image featured by Coincu News