A crypto analyst has clarify the current stages of Bitcoin’s bull-bear cycle, suggesting that the cryptocurrency is also moving past a bear trap and preparing for substantial bullish rallies toward latest highs.
Was Bitcoin’s Sudden Crash A Bear Trap Or Shake Out?
BTC’s price is closely approaching $62,000 after what some crypto analysts are calling one among the dramatic bear traps. In an X (formerly Twitter) post on August 8, a crypto analyst identified as ‘Sensei’ posed the query of whether Bitcoin’s recent price crash might have been a “shake out or bear trap.”
A shake-out here’s a general term used to clarify a brief lived price decline in a cryptocurrency aimed toward forcing out weaker investors and pushing them to sell their holdings. In contrast, a bear trap occurs when the worth of a crypto asset falls dramatically, causing investors to assume that the bear market has begun.
Sensei has predicted that Bitcoin’s bear trap is about to complete this weekend, implying that bearish sentiments is also waning. Inside the previous weeks, BTC underwent a sharp price decline, falling drastically below the $50,000 mark. The cryptocurrency had crashed by greater than 20%, primarily driven by large-scale market liquidations.
Shedding more light on Bitcoin’s bull-bear cycle phase, crypto analyst, Michael van de Poppe disclosed that Bitcoin’s massive price correction could ultimately lead to the bear trap this cycle. Poppe revealed that this price decline may cause widespread capitulation, wiping out a staggering $1.2 billion in investments affected by leveraged trading.
Alternatively, Sensei has been incredibly bullish on Bitcoin’s future outlook for the past months. He anticipates a robust bull run this 12 months, forecasting that BTC’s bullish momentum could start as early as next week.
The analyst has also shared a chart depicting Bitcoin fractal points, indicating a possible for an infinite bull run this cycle. Based on the chart evaluation, BTC continues to be on the underside (early phases) of its bull run, underscoring the need for stronger price fundamentals and greater stability to construct more momentum.
Analyst Predicts $72,000 Bullish Goal For Bitcoin
In a single other X post on August 10, Sensei predicted that Bitcoin could surge as high as $72,000. Sharing a BTC price chart featuring two upward trend lines, the analyst indicated that current market trends and price movements suggest that Bitcoin’s price is liable to rise to latest all-time highs.
On the time of writing, BTC is trading at $60,741, marking a 1.32% decline over the past seven days, according to CoinMarketCap. Despite witnessing a decline in its 24-hour trading volume and its value, the pioneer cryptocurrency has successfully reclaimed the $60,000 mark, highlighting a possible for a price recovery.
Featured image from iStock, chart from Tradingview.com