BTC is Pumping, But This Reports Tells You Why You Shouldn’t Be Overly Excited
BTC’s bullish movement generated an aura of optimism in numerous analysts and crypto currency enthusiasts. Reports from various experts around the world speak of a possible end to the bearish trend and even mention that the market could be close to the next bullrun.
The performance of BTC influences the rest of the markets, and these days the situation has not changed. Ever since BTC showed signs of stability, an increase in the volume of altcoins trading, as well as a consistent rise in the value of tokens led many to declare that the alt season had begun.
However, a recent report by the London Block Exchange (LBE) calls on investors to take some level of caution. Without providing a complete bearish picture, they warn that bears still have some degree of influence and that it is difficult to see an exponential growth similar to that experienced during 2017:
“Bitcoin just hit its yearly high around 5am BST— briefly reaching $5.65k (£4.35k) after rising 3.5% since midnight. But only two of the top 50 alts haven’t lost value against BTC over the past 24 hours — with others seeing a 3.2% average loss.
This was a small move, but the relationship also holds in more explosive times — hence the need for care in case bitcoin bulls decide to attempt breaking the mythical $6k (£4.6k) level. That’s unlikely to happen so soon though, as BTC still has to prove its worth at the current level”
Careful With Your BTC, Careful With Your Alts
The LBE team likewise explains that it is not yet possible to speak with a high degree of certainty about the beginning of the alt season.
“It’s also key to keep in mind that for most cryptoassets this means pumps are a zero-sum game. In other words, this is still not alt season,”
This criterion was explained again in a report published a few hours ago where they argue that possibly this week’s famous “bull run”, is actually a “bull trap”.
Meanwhile, the alts dump has halted. But note that Ripple’s XRP – one of the five large cap alts that failed to appreciate this year – revisited last December and February lows. On USD terms that is; because against BTC it might have been the short of 2019! This scenario is exciting bears. Some are even claiming April’s rise was a bull trap.
The LBE approach advocates for some prudence, however most major crypto traders and analysts are rather excited about the current market situation.
So much is the overall sentiment that a recent poll by the famous analyst Willy Woo showed that out of almost 20 influencers only 5 have little confidence that BTC will have a bullish performance.