3 - 5 minute read
Bitcoin may be nearing its highest levels in months, but not everyone is convinced that the bull market is back. Despite recent gains, analysts remain nervous about the possibility of a pullback in the near future.
Ahead of a key weekly close, BTC/USD remains near $21,000, according to data from Cointelegraph Markets Pro and TradingView. Chris Burniske, the former head of crypto at ARK Invest, has summed up the current sentiment by saying, “Now bears will be caught in the vicious cycle of praying for pullbacks to go lower, not realizing the tides have shifted for a time and we’re going higher.”
Even the more optimistic takes, like Burniske’s, do not anticipate a smooth ride for Bitcoin in the near future. Popular commentator Lemon has predicted that BTC/USD will fall further, posting a graphic on Twitter over the weekend with the caption, “Sorry, I have to be true to my thoughts, I think we are here.” He believes that Bitcoin sentiment and price are heading toward macro lows.
Another commentator, Il Capo of Crypto, has described the recent rebound in Bitcoin prices as “one of the biggest bull traps I’ve ever seen.” He advises those who have made profits during this rebound to protect them, as he still sees a $12,000 macro low as “still likely.”
Maartunn, a contributor to on-chain analytics platform CryptoQuant, has warned that the BTC price correction could come sooner rather than later. He notes that funding rates on derivatives platforms are reaching unsustainable levels, and that when funding rates were as high as they are now, Bitcoin had a pullback.
While some see the recent rebound in Bitcoin prices as a sign of a bull market, others are more cautious, warning of a potential pullback in the near future. This uncertainty is reflected in the high funding rates on derivatives platforms, which are causing concern among analysts.