- Bitcoin analyst compares current market situation with pre-Terra crash period.
- Trader_J says Bitcoin market is being pumped using BUSD stablecoin.
- The analyst describes the situation to be scary, as prices may drop sharply.
Acclaimed Bitcoin analyst Trader_J on Twitter has raised an alarm over the current trend of the flagship cryptocurrency. He considered some historical data to suggest the possibility of an imminent crash in market prices, following the recent rally.
In a Twitter post, Trader_J shared a screenshot of a similar trend sometime in the middle of 2022. During this period, the Bitcoin price surged, moving from $38,000 to $48,000 over a short period. Following this surge was a sharp drop in price that sent Bitcoin to much lower levels, leading to the recent lows at sub $20,000 levels.
Trader_J’s concern is that there appears to be a correlation between the events of the past year and the current market situation. He noted that last year’s Bitcoin surge as indicated was a result of large purchases by Do Kwon, shortly before Terra’s challenges became public.
The concern raised by Trader_J borders on the observation that the bulk of Bitcoin purchased in the current rally is made using the stablecoin BUSD. In his words, “This looks scary”. Notably, he is relating the current rally to the previous one linked to Do Kwon’s purchases. To him, last year’s rally was manipulated. Perhaps, the current rally may be tending toward the same direction.
Trader_J shared several details as evidence of his postulation. Some of them involved Kwon’s confirmation of such purchases shortly before Terra collapsed. He explained that the information he shared was to expose what may be happening to the markets, based on experience. However, he acknowledges that his assumptions might be wrong, but he wouldn’t want to share false hope.
Bitcoin has been on an uptrend since the beginning of the year. The nature of the current rally has left several users confused. Many analysts predicted that prices will fall lower before forming a bottom ahead of the next bull run. This has not happened, and Bitcoin price has continued to climb.
With prices unfolding and opinions arising, traders are moving with caution, hoping not to be caught unaware, as has often been the case.
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