What a great weekend crypto had. After experiencing what some were calling a doomsday scenario on Tuesday the 20th, everything seems to be on track again.
But are we really in a bull market again? Or are we just releasing some pent-up euphoria because of recent news?
Everyone knows how hard it is to predict how the crypto market is going to move. With it being a relatively new type of asset class, it often comes with a lot of volatile periods that can be often irrational.
Those are the exact sentiments of Ruud Feltkamp, CEO of the crypto trading bot Cryptohopper. He believes that this current bull run is similar to that of 2017
—technically absurd and illogical.
Feltkamp says that "the market has been consolidating for some time, and an upturn was expected by many in late Summer or early September". And the truth is that this is part of bitcoin's yearly cycle.
He also noted that "Amazon's decision to hire a crypto team and Tesla accepting Bitcoin again has provided the spark needed to trigger the cryptocurrency market once again".
The truth is, if things continue this way, we can expect bitcoin to reach 50K soon.
Euphorically Cautious
Loukas Lagoudis, Executive Director at crypto/digital assets hedge fund ARK36, is a bit more measured in his thoughts about crypto.
He recognizes that it is exciting to see bitcoin rally 10%. And while it is great to see the market sentiment improving, he urges investors to be careful.
"Investors should proceed with caution and avoid overtrading, noting that the liquidity is still relatively low as we are heading into the holiday season," said Lagoudis.
Similar to Feltkamp, he believes this rally is fueled by the positive news we've seen over the last few days. Among the biggest were the bullish comments from Jack Dorsey, Cathie Wood, and Elon Musk at The B Word event. And of course, the rumor of Amazon looking to accept bitcoin payments and creating their own token also played a role.
Yet, Lagoudis urges investors and traders to be careful.
"Should Amazon contradict these claims, the price will undoubtedly fall back down, possibly to around $34-35K", he said.
Up Or Down? Or Both?
Lagoudis also notes: “Bitcoin still hasn’t made a higher high", he said. This only means that the consolidation area hasn’t moved from the $29-30K levels.
Lagaudis, however, also contemplates a bullish scenario. "Once Bitcoin breaks $40K, investors may be more confident in the upward momentum," he said recently. And we know the more confidence, the higher the price can go.
Still, Lagoudis is skeptical. He believes that at the moment, we can’t discard the possibility that we’re seeing short squeeze conditions unfold.
The truth is that the market is still deciding where to go. The short-term change may not be reflected so soon in higher time frames. Let's see how the month ends... if we close over 35K, we may see fireworks. Hopefully, investors can see higher prices over the next months.
