Bitcoin rally halts amid fears of ‘bull trap’

by Jonathan Adams
Bitcoin

BTC slipped to $43,000 during the day after its jump to near $45,000 earlier this week

Bitcoin’s rally halted Thursday, ceding the stage to crypto currency majors ether and solana which led the crypto rally after soaring to new 19-month high.

BTC slipped to $43,000 during the day after its jump to near $45,000 earlier this week, indicating that traders took some profits after the biggest crypto’s breakout from $38,000 a week ago. Recently, bitcoin was trading near $43,300, lower 1.1 per cent over the past 24 hours.

Ether, meanwhile, shed 5 per cent over the same period and reached $2,372, its highest level since May 2022.

Its rally drove up the prices of other ETH-adjacent crypto currencies, making them the best performers of the day. Ether classic gained 6 per cent, while liquid staking protocol Lido’s governance token (LDO) added more than 11 per cent.

Native tokens of Ethereum scaling networks Optimism and Arbitrum also added 22 per cent and 9 per cent, respectively, during the day.

Solana climbed more than 8 per cent to $69, the highest since May 2022, after a three-week cool-off since its mid-November local top. Arthur Hayes, crypto investor and BitMex exchange founder signalled a $100 price target, speculating about a bullish weekend for altcoins in social media platform X (formerly Twitter) post on Tuesday.

Crypto analytics firm Santiment noted that bitcoin’s flattening price coincided with traders increasingly calling for a potential “bull trap,” a short-lived rally that bates investors back to the market before a major downturn.

Traders are concerned that crypto markets may be in a bull trap at the moment, Santiment posted on X (formerly Twitter) Thursday, citing social media metrics.

The growing disbelief could actually help propel bitcoin further toward $50,000, Santiment said, squeezing shorts who are betting on lower prices.

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