Crypto whales are warning against the new Bitcoin rally

Bitcoin price started seeing a massive surge on April 29th, and the price movement extended to April 30th, as well. With the halving only 12 days away now, Bitcoin finally managed to shake off the coronavirus-caused doubt and fear.

The asset’s price skyrocketed, as the world’s largest crypto started behaving adequately for a pre-halving period. Meanwhile, everyone seems to be looking for the best place to buy cryptocurrencies, which drives the price further up.

Crypto whale agrees: The rally is a fake

With Bitcoin finally shaking off the bears and starting a new bull run, being optimistic is quite understandable. However, crypto whales warned recently that the coin’s 21% price surge is a fake — illiquid and overextended.

The warning came from a prominent trader, although one who risks losing at least $20 million due to his anti-rally positions. The trader, known on Twitter as Joe007, claims that this is just an organized FOMO rally.

He also retweeted a comment by ZeroHedge’s Tyler Durden, that claims that “The weekly Bitcoin chart is the definition of an illiquid altcoin.” However, he blames Chinese miners for the new move. He added that “My hope is that the halving will financially destroy as many Chinese miners as possible and we can actually have a legitimate bull market instead of this pump and dump movie.”

Bitcoin price already withdrawing: Is the surge over?

Meanwhile, the crypto community remains optimistic, mostly due to the upcoming halving. Traders expect that cutting block rewards in half would make Bitcoin more valuable, as the inflow of new coins gets reduced.

With people expecting the coin to hit the popular mark of $100,000 by 2021, it is hardly surprising that everyone wishes to invest in Bitcoin. This sentiment even allowed the coin to make a full recovery from its dip to $3.858 earlier this year.

At the time of writing, the coin sees a strong correction that just took it down by $400, from $9,200 to $8,810. At this time, BTC is still 10% higher than it was yesterday. However, the negative expectations seem to have caused some doubt, and the coin is, in fact, returning to lower levels. The biggest question now is whether it will go back to where it was, sink even lower, or perhaps stay above $8.8k.