Crypto Firm Warns of “Bull Trap” as Bitcoin Hits $82.7K

QCP Capital, a crypto trading firm, recently cautioned that Bitcoin (BTC) could be setting up for a “classic bull trap” as the price tags $82,700. The firm's warning comes in light of developments in the US-China trade war, where US President Donald Trump has decided to pause new tariffs on most countries, with China being the notable exception.

The firm’s latest bulletin on April 10 highlighted that Bitcoin and altcoins have been moving in line with global stock markets due to this temporary relief. However, QCP cautioned that the pause in tariffs is just a brief reprieve, and market participants should brace themselves for China’s following response in the trade war.

QCP warned that China's countermeasures could trigger another round of market volatility similar to what was seen earlier in the week. The firm emphasized the risk of market conditions being manipulated by short-term news and policy changes.

Furthermore, there is the potential for Bitcoin to benefit from the ongoing economic situation. Specifically, the possibility of a devaluation of the Chinese yuan could drive more demand for Bitcoin, as investors seek assets perceived as neutral and uncorruptible. The USD/CNY exchange rate hit a low of 7.35, its lowest in 18 years, which could signal more yuan devaluation.

https://twitter.com/CryptoHayes/status/1910140538281668680

Sina, co-founder of 21st Capital, mentioned that the increasing tariffs, slowing global trade, and a lack of confidence in traditional financial systems may lead more people to consider Bitcoin an alternative investment. He suggested that Bitcoin may not yet have reached its long-term price bottom.

This analysis adds to the growing list of BTC price targets, many centered around the $70,000 mark as a potential recovery point.