Bitcoin is currently trading at $7,731, up over 109 percent till date in 2019 and according to the eToro senior analyst, Mati Greenspan cryptocurrency market is now in spring which he says is “really the best time.”

Last year we went through brutal crypto winter that had us dropping down to the yearly low at $3,150. Now, as we climb from $5,300 to $9,100 in just a month, these whopping gains are a sign that we are in spring which is “best by far.” But Greenspan is not looking forward to summer as he wrote:

“Summer is hot and people get burned. Last crypto summer was arguably harsher than any winter. Bitcoin’s mempool got flooded, transaction times and fees went through the roof. Not to mention that many exchange sites crashed due to heavy traffic and several of them even had to close their doors to new customers.”

“It was a very tense time and even though bitcoin’s price doubled in 17 days, those gains were eventually given back and anyone who bought in during those two and a half weeks was left with a very bitter taste.”

It’s All a Trap, Get Ready for a Crash

However, this surge of over 100 percent in 2019 might be all a ruse, according to crypto analyst, Willy Woo.

We are already seeing the bull rally losing its steam, as we crashed to below $7,400 from the high of $9,100. This is a sign that short-squeezing isn’t profitable anymore and whales are selling.

A flashing warning here is the NVT indicator that measures the network value of Bitcoin against transactions. Often used to predict the overbought levels, Woo explains, the divergence currently seeing is at a level that was previously seen only at the top of an aggressive sell-offs.

Woo explain how the price explosion has been simply a short-squeeze that was driven by hedge funds.

“With on-chain investor volumes in the normal range, the only explanation is from short term trade activity on the exchanges. This is a quant fund driven short squeeze devoid of any true investor volume.”

A short squeeze occurs when a majority of traders are betting against the price of an asset called short selling.

Then, whales eager to slaughter these short seller start buying in huge volume, in turn pushing the price up that forces these short sellers to close their positions. Once the majority of shorts are liquidated, the squeeze is complete and it’s no longer profitable to keep buying and currently, we are at this point.

“At the $8k-9k mark the market switched from short to majority long. This put a cap on the profitability of short squeezing.”

And now, as analysts have been calling out for a 30 percent retracement, on numerous occasions, Woo is also awaiting a “proper retrace” where organic buyers are waiting for a buy in.

“I’m awaiting this exchange driven pump to blow off, a proper retrace, and only then do I think real investor flows will come in and drive the true organic bull market.”

On the new bull run to a new ATH, there will be a number of retracements along the way that will offer buy the dip opportunities, so keep calm and trade the trend.

The views and opinions expressed in the article Bitcoin’s “Exchange Driven Pump” Going to “Blow Off” Before True Organic Bull Market Starts do not reflect that of 48coins, nor of its originally published source. Article does not constitute financial advice. Kindly proceed with caution and always do your own research.

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