Leading Trader Sounds the Alarm, Suggesting Crypto Surge Could Be Unsustainable Due to a Shortfall of Fresh Investment for Further Growth

A noted cryptocurrency analyst is signaling caution, suggesting that the market for digital assets might be excessively exuberant, with a paucity of fresh capital inflows.

The anonymous analyst going by the moniker The Flow Horse informed his substantial following of 209,800 on social network X that there could be a downturn in the crypto market as it approaches the anticipated halving event— an occurrence in which the Bitcoin (BTC) mining rewards are slashed by 50%.

This halving is projected to happen around April 20th.

“Some quick reflections: as the halving draws near, I’m more inclined to lessen exposure to risk for a brief interval. It seems like the whole market is fixated on this milestone, expecting the same outcome, and that tends to end in an unexpected opposite-direction trap.

After an initial run-up, funding rates are struggling to reignite, indicating to me that the market might be running low on capital at these price levels to uphold consistent buying pressure.”

Meanwhile, the trader expresses the view that crypto and stock market price movements are tightly linked, hinting that any major shifts in digital currencies will likely correspond with equity market behavior.

“If your analysis suggests that crypto has reached its peak, you should also be predicting a peak in equities. There’s simply no way to decouple the two.”

Despite the concerns, the trader remains optimistic that Bitcoin might sustain its upward trajectory.

“They say a watched pot never boils, yet my hope is for a closely observed Bitcoin to shatter expectations and soar.”

Another crypto commentator who goes by the alias Rekt Capital postulates that Bitcoin could maintain its ascending trend as long as it holds above the pivotal $69,000 mark on the weekly timeframe.

“BTC is experiencing a sharp rejection from the $71,300 resistance shaded in blue. Yet, it’s still maintaining the previous all-time high (ATH) as a support zone (depicted in black). Unless this former ATH support range fails, Bitcoin appears to be consolidating within these two levels.”

At the time this was written, Bitcoin is valued at $68,901, reflecting a 4.1% decrease over the last day.

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