The market seems to be in a good mood. I mean it's all greenish out there, and it's evident, at least to some people, that the bull run is here. However, there are also speculations that this might be a bull trap.
What are bull traps
Bull traps are meant to be a false signal in any market that is meant to trap traders and investors.
This happens when they buy an asset above the resistance or breakout level thinking it's going to follow the rally up but instead, the market does otherwise, hence the trap of not being able to sell without a loss.
At times like this, it's best to be sceptical about who and what you listen to.
Making any decisions based on some claims that this is a trap would leave one regretting not getting into the market when he still had the chance.
Has this type of move been made this year? Yes, but this time it's different and I will tell you why.
Why most people think it's a bull rally
On April 10, BTC made a move above $31,000. So, this will be the second time of seeing it cross over $30k.
However, what made this rally different from the earlier one this year was that most of the institutions, especially the big ones in the finance sector, are all pushing for a BTC ETH but still, none has been approved.
But we are getting there little by little.
Baby steps would be the perfect term to use.
Not up to 24 hours ago, we got the first BTC ETF leverage fully approved, which signifies we are on the right track to having a spot ETF sooner than later.
If we look at all the news about regulations, ETFs, and lawsuits against CEXs, it's clear that the SEC is ready to recognize BTC as a digitally traded asset, but the issues seem to boil down to who gets to be in control…
And they don't want someone like CZ’s Binance in control.
I guess they are cooler with BlackRock and Wall Street taking over things than letting just anyone, anywhere take care of things.
Moreover, the bitcoin halving is said to happen next year, which is when most people indicate would signal a real bull run due to the supply and demand mechanism.
BTC would be scarce after the halving, so I think it's best to DCA into BTC now or go all in if you can withstand whatever trap may unfold until 2024.
At the time of writing, it seems BTC is barely above $30.5k, which still signals that a bull run might be around the corner. Or a Bull Trap, like some have speculated.
What are your thoughts on the current crypto rally?
Are we going for a run, or there won't be any until 2024?