Bullish Sentiment Returns as BTC Nears $70K But Is it a Trap?

Crypto markets have seen a rare green day with a 3.7% gain in total capitalization, which has increased by around $120 billion to $2.43 trillion.

“Just two days after the crowd was bracing itself with a $60,000 retest, Bitcoin is now on the verge of returning back above $70,000,” commented Santiment on Thursday.

“The bullish narrative has predictably returned,” and the crowd has begun to “flip into FOMO mode,” it added.

Bitcoin only briefly tapped $70,000 before retreating to $68,000 at the time of writing, so it may have been a bull trap.

Bitcoin Bull Trap and Relief Rally

“Bitcoin has just entered the final bull trap of this cycle,” said analyst Chiefy, who added that charts are “literally mirroring the 2022 chart right now.” They predicted that BTC would dump to $44,000 in ten days.

A bull trap is a false bullish signal in trading when an asset is in a downtrend, and the price suddenly rallies upward, showing signs of reversal, and luring in bullish traders before the price resumes its downtrend, forcing them to sell. This rise in Bitcoin “is just a relief rally,” said CryptoQuant analyst ‘PelinayPA.’

She pointed out that the Fund Flow Ratio, which measures the amount of BTC flowing into Binance relative to the total held on the exchange, remains at a low level of 0.012.

Jane Street Suit Ends Manipulation

Analyst ‘Bull Theory’ had a different take. Since Jane Street was sued and manipulation stopped, the crypto market has added over $200 billion in just 48 hours, they said.

“Whether it’s Jane Street constantly manipulating the markets,” or the “gamma play on options,” or the correlation with the software companies that have been pushing down Bitcoin prices, “it doesn’t matter,” said MN Fund founder Michaël van de Poppe.

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