A crypto strategist known as The Flow Horse has warned that crypto bulls may be falling into a trap as traders anticipate a potential sell-off event. Despite a recent liquidation event, many market participants remain bullish on Bitcoin and other cryptocurrencies. The analyst believes that a major sell-the-news event is on the horizon, possibly referring to the approval of spot market Bitcoin exchange-traded fund (ETF) applications. Bloomberg analyst James Seyffart has predicted that regulators may greenlight these applications next month.

However, industry veterans have expressed caution about the impact of ETF approval on BTC’s price. Chris Burniske, the founder of Placeholder Capital, believes that the event may not be bullish for Bitcoin. He suggests that rejections could lead to a sell-off, while approvals may only attract those who have already bought in anticipation. The Flow Horse suggests that Bitcoin could potentially drop below $40,000, with a target range of $38,000-$39,000 to attract more market participants.

As of now, Bitcoin is trading at $40,994. It is important for investors to conduct their own research and exercise caution when making high-risk investments in Bitcoin, cryptocurrency, or digital assets.