Bitcoin Rising! Critical Bull Trap Warning Received From Analyst!

As Bitcoin (BTC) gained momentum again today, 2 leading analysts made important statements about the reasons and sustainability of the current rise.

Dollar Index (DXY): Bitcoin's Rise Dead Cat Leap

The cryptocurrency market has turned green again today. After falling below $19,000 yesterday, Bitcoin price managed to climb above $19,200 today. Ethereum(ETH), on the other hand, outperforms Bitcoin in anticipation of Merge. BTC is up just 2%, while ETH is up close to 7%. ETH is currently trading at $ 1.627. Other altcoins have also started to recover substantially. NASDAQ, which is highly correlated with Bitcoin also increased by 2.18%. Stocks in Asia and Australia also performed strongly. The question that comes to mind with the increase in crypto money prices is whether the bottom level is really seen in Bitcoin or whether this rise is another bull trap. Michael van de Poppe, CEO and senior analyst at Eight Global, claims that Bitcoin has already seen the bottom at $17,500. According to the analyst, this is because Ethereum and other altcoins are performing well. The analyst also highlights yesterday's drop in the dollar as another reason for the surge in Bitcoin. De Poppe predicts that in the long term, BTC will recover at the desired level.

However, most analysts do not agree with this view. The rise of the dollar index to the highest level of the last 20 years is due to the quantitative tightening of the Fed. There is no sign that the Fed will return from its hawkish stance. According to experts, the Fed will raise the policy rate again by 75 basis points. The dollar is expected to rise as the Fed continues quantitative tightening. In such a scenario, it is not possible for Bitcoin to straighten its back. Crypto of il Capo, one of the leading analysts, believes that the decline in Bitcoin will deepen. The strategist expects a short-term uptrend for the Bitcoin price. The analyst believes that the Bitcoin price will rally to the $22,500-22,000 range and then fall to new lows.

Market Focused on September 13th!

Bitcoin price is now tied to the dollar index. The CPI data, which is expected to be released on September 13, will affect the Fed's future monetary policy. This will again have a significant impact on the Bitcoin price. The current bear market is being touted as potentially the worst in Bitcoin's nearly 14-year history.

Increasing selling pressure, Fed rate hikes and whales selling their BTC show that the light at the end of the tunnel is still far away. BTC's drop below $20,000 is a critical development, symbolically. The deepening of uncertainty in the economy, the energy crisis, and large sales of whales and miners reduce the chances of recovery.

Source: coin-turk.com