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Bitcoin hits $82.7K, Crypto Trading Firm warns about a “classic bulltrap”

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Bitcoin Enters Dreaded 'Chop Season'
Bitcoin Enters Dreaded 'Chop Season'

BitcoinBTC( ) is at risk of becoming a “classic bull trap” Analysis warns that the next move in the US-China Trade War will be a step up.

QCP Capital warned its subscribers in a recent Telegram message on April 10 about the latest cryptocurrency price recovery.

QCP: Chinese “countermeasures” May leave crypto bulls stuck

The global stock market has now included Bitcoin and other altcoins. rallying over the past 24 hours The US president Donald Trump has decided to stop many of the new tariffs he had imposed.

China, on the other hand, was an exception, as Trump increased tariffs on China while easing pressure on all countries. 

QCP should not be rejoicing, but rather prepare for China’s next moves.

“With China singled out so explicitly, market participants are bracing for Beijing’s counterpunch,” This is why. 

“Should retaliation materialise in force, the exuberant rally could quickly morph into a classic bull trap.”

BTC/USD 1-hour chart. Source: Cointelegraph/TradingView

A similar scenario could be a replay of this week’s market behavior. As Cointelegraph reportedAn earlier rumor that a tariff suspension was in place, but which did not receive official confirmation, sparked stock movements never before seen.

“The surprise policy pivot temporarily soothed market anxiety, driving short-end crypto vols lower. Still, we advocate caution,” QCP continued. 

“Our desk continues to observe topside selling in May and June, suggesting that market makers are using the rally as an opportunity to offload unwanted positions.”

Bitcoin – Get “meaningful slice” Yuan Outflows

Other commentators noted the potential for Bitcoin to benefit from the Chinese yuan’s devaluation, as it could act as a short-term measure during the trade war. USD/CNY reached a low of $7.35, the lowest in 18 years.

Related: Crypto stocks see big gains alongside US stock market rebound

“China beginning currency devaluation is more than just an economic signal—it’s a trigger,” Sina is the cofounder of 21st Capital asset management. She told X in a part of a topical post. 

“Historically, when the yuan weakens, capital doesn’t stay put. It escapes. Some of it flows into gold, some into foreign assets—and a meaningful slice finds its way into Bitcoin.”

USD/CNY 1-month chart. Source: Cointelegraph/TradingView

Sina stated that BTC investment would be more appealing in the future due to macroeconomic factors.

“Now layer on rising tariffs, slowing global trade, and a deepening crisis of confidence in traditional financial systems. The result? A growing demand for neutral, borderless, incorruptible assets,” He said. 

“Bitcoin isn’t just a hedge anymore. It’s becoming a necessity in a world looking for stability outside the control of any one nation.”

In subsequent discussions, however, he acknowledged Bitcoin was unlikely to have reached a price low on the long term.

Cointelegraph has previously reported on different BTC price target for a sustainable rebound. Many of these targets were based upon a lower BTC. focusing on $70,000.

The article is not intended to provide investment advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making their final choice.