Expert Trader: Bitcoin Shows Signs of Life, But Warning Bells Ring Over Rapid Euphoria After Bear Markets

I hear you in the comments section.

People are looking for answers. Is this the start of the recovery, or can we expect more pain?

I need to clear up one thing. No one can answer this, not even the experts.

But you look at the data, apply as much logical sense as possible, and decide. You then live with the decisions you’ve made.

You’ve probably never heard of Gareth Soloway.

Social media is littered with so-called experts who give advice, and it’s getting harder to weed out the charlatans and what they say, even if you have a firm grip on the Crypto market.

Soloway isn’t one of them.

He’s a master trader who has used fundamental and technical analysis over a 25-year career and has experienced around 100 bear markets in stocks, commodities, currencies and crypto.

Soloway was one of the few traders who predicted the peak of the crypto market in the fourth quarter of 2021 and accurately predicted its decline.

You may have noticed that Bitcoin has been rising, and many investors are excited about this sudden surge. Soloway clearly says this is not a sign of a new bull market and warns investors not to get too excited.

He’s been through many bear markets in his 25-plus years of trading, and he knows that it’s rare for a bear market to end with Euphoria coming in so quickly.

Usually, the first 10–20–30 per cent after a bear market, investors are very sceptical, and that’s not what he’s seeing this time, which makes him a little nervous.

Soloway says people were biding their time and jumping back on the bandwagon. He’s seeing a lot of hype building very quickly and is also concerned about the incredible pumping across all social media platforms.

Gareth Soloway believes that the big move upward we’ve seen in Bitcoin, Ethereum, and crypto markets at the beginning of 2023 is just a bear market rally.

In his latest interview, Gareth reveals why he believes the Federal Reserve will not allow markets to move too far upward and believes lower lows are still to come.

Gareth also suggests that keeping the current market movement in perspective is essential. We don’t have that dropping of rates that can stimulate the Bitcoin surge again like past bear markets ending, nor do you have quantitative easing going on, both of which are unlikely to come in this year.

So, for him, this is very classic of a bear market rally, and that’s why he’s a little sceptical.

Gareth Soloway — Source

“We’ve had an impressive move on Bitcoin. You see a lot of this hype building very quickly, which is a little concerning for me.

I’ve been through many bear markets in my 25-plus years of trading, and it’s very rare that a bear market ends with Euphoria coming in so quickly.

Usually, the first 10–20–30 per cent after a bear market, investors are very sceptical, and that’s not what I’m seeing this time.

It makes me a little nervous, to be honest. I think that people were just biding their time and jumping back on the bandwagon.

I’m seeing incredible pumping across all social media platforms.”

Gareth Soloway is saying that the recent crypto market movement is not likely to be sustained, even as it looks like the Federal Reserve is approaching the end of its hiking cycle and may not implement any further increases.

He says interest rates will likely stay high for 2023, and the crypto market will probably not get the boost it needs to rise again.

Gareth Soloway — Source

“I know there hasn’t been any change (Rates). You could argue that the Federal Reserve is coming to the end of their hiking cycle, but that doesn’t mean interest rates are going to go back down.

The FED funds policy level will remain at five-ish per cent for most of 2023, so you don’t have that dropping of rates that can stimulate the Bitcoin surge again like past bear markets ending.

Nor do you have quantitative easing, which is unlikely to come in this year. So for me, this is very classic of a bear market rally, and that’s why I’m sceptical.”

If You’re Getting Sucked Into This Market, You Remind Me of Kids Who Haven’t Had Candy in Years.

In a series of tweets, Gareth Soloway continues warning that the current crypto market movement should be taken with a grain of salt, despite the recent 30% run in Bitcoin.

He mentions that with 25 years of experience trading in various markets, he’s seen many bear market rallies that can make people believe that a new bull market is beginning, but this is similar to a bear market rally.

He’s suggesting not to expect it to continue in the long term by comparing the similarities of the current crypto market movement and the run of Tesla on a stock chart.

Gareth Soloway is saying that people are getting overly excited about the current crypto market movement and comparing it to kids who have not had candy in years and get one M&M and are incredibly happy.

Soloway believes that the bear market in crypto is not over because of the behaviour of inexperienced investors, whom he refers to as “toddler bulls.”

He thinks these investors joined in 2018 or later and have yet to experience a bear market rally. Thus their behaviour indicates that the bear market is not over yet.

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This article is for informational purposes only; it should not be considered financial, tax or legal advice. You can consult a financial professional before making any significant financial decisions.