A crypto analyst has shed light on the current phases Bitcoin’s bull-bear cyclewhich suggests that the cryptocurrency may be leaving a bear trap behind and moving towards significant bullish rallies on the way to new heights.
Was Bitcoin’s sudden crash a bear trap or a shock?
The price of BTC is approaching $62,000 after some crypto analysts vocation one of the most dramatic bear traps. In an X (formerly Twitter) post On August 8, a crypto analyst named “Sensei” asked whether The recent price crash of Bitcoin could have been a “shaker or bear trap.”
A Shake out This is a general term for a temporary Price drop in a cryptocurrency that aims to squeeze out weaker investors and force them to sell their shares. In contrast, Bear trap occurs when the price of a crypto asset falls dramatically and investors believe a bear market has begun.
Sensei has predicted that Bitcoin’s bear trap will end this weekend, suggesting that the bearish sentiment may be fading. In the past few weeks, BTC experienced a sharp price decline, drastic drop below the $50,000 markThe cryptocurrency had crashed by more than 20%, mainly due to large-scale market liquidations.
Crypto analyst Michael van de Poppe sheds more light on Bitcoin’s bull and bear cycle phase disclosed that Bitcoin’s massive price correction in this cycle could ultimately lead to the bear trap. Poppe revealed that this price drop could lead to widespread surrenderwiping out a whopping $1.2 billion in investments affected by leveraged trading.
On the other hand, Sensei was incredible optimistic about Bitcoin’s future prospects in recent months. He expects a strong bull run this year, forecast that BTC’s upward momentum could begin as early as next week.
The analyst also divided a chart depicting Bitcoin fractal points, indicating a potential for a massive bull run in this cycle. According to the chart analysis, BTC is still at the bottom (early stage) of its Bull Runwhich underscores the need for stronger price fundamentals and greater stability to build more momentum.
Analyst predicts bullish target of $72,000 for Bitcoin
In another X-Post On August 10, Sensei predicted that Bitcoin could rise to as high as $72,000. The analyst shared a BTC price chart with two uptrend lines and pointed out that current market trends and price action suggest that Bitcoin price is likely to new all-time highs.
At the time of writing, BTC is trading at $60,741, down 1.32% over the past seven days, according to CoinMarketCap. Despite a decline in 24-hour trading volume and value, the pioneer cryptocurrency has successfully has regained the $60,000 markwhich indicates potential for a price recovery.
Featured image from iStock, chart from Tradingview.com
