Bitcoin rise halts due to concerns over “bull trap” – Ethereum and Solana hit 19-month highs | CoinDesk JAPAN

• Ethereum and Solana hit new 2023 highs while Bitcoin fell to $43,000.
• Santiment said there are concerns about a “bull trap” in Bitcoin, which could push the price to $50,000 as concerns intensify.

The rise of Bitcoin (BTC) stopped on the 7th. Instead, Ethereum (ETH) and Solana (SOL), which soared to a 19-month high, led the crypto market rally.

Earlier this week, Bitcoin had made a strong rally to nearly $45,000 (approximately 6,525,000 yen, equivalent to 145 yen to the dollar), before falling to $43,000 on the 7th. This suggests that traders have taken some profits since the coin broke above $38,000 a week ago. At the time of writing, Bitcoin was trading at around $43,300, down 1.1% over the past 24 hours.

Ethereum and Solana are at their highest since May 2022

Meanwhile, Ethereum soared 5% over the same period, hitting $2,372, its highest price since May 2022.

Ethereum’s rise led to an increase in the prices of other crypto assets related to Ethereum, which became the top performers on the 7th. Ethereum Classic (ETC) rose 6%, while LidoDao (LDO), the governance token of liquid staking protocol Lido, rose over 11%.

Ethereum scaling networks Optimism’s OP and Arbitrum’s ARB also rose 22% and 9%, respectively, on the day.

Solana has soared more than 8% since its high in mid-November after three weeks of cooling. It reached $69, the highest price since May 2022. Arthur Hayes, a cryptocurrency investor and founder of the cryptocurrency exchange BitMEX, predicted on X (formerly Twitter) on the 5th that altcoins would become bullish over the weekend. , hinted at a target price of $100.

The CoinDesk Market Index (CMI), which measures the performance of the entire crypto asset market, rose 0.6%.

Concerned about Bitcoin’s “bull trap”

Blockchain data firm Santiment believes that the flattening of Bitcoin’s price is due to a “bull trap” (a short-term move that pulls investors back into the market before a major downtrend) among traders. He pointed out that this coincides with the growing calls for a strong market trend.

“Traders are concerned that the crypto market is currently in a bullish trap,” Santiment said on Monday, citing social media indicators.

Santiment said rising doubts could push Bitcoin further towards $50,000 and weigh on short sellers who are betting the price will fall. “If FUD (Fear, Uncertainty and Doubt) increases, Bitcoin could rise to $50,000.”

｜Translation and editing: Rinan Hayashi
｜Image: CoinDesk
｜Original text: Ether, Solana Hit 19-Month Highs as Bitcoin Rally Halts with Traders Fearing ‘Bull Trap’