A crypto analyst has shed light on the current stages of Bitcoin’s bull-bear cycle, suggesting that the cryptocurrency may be moving past a bear trap and getting ready for substantial bullish rallies toward new 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 of the most dramatic bear traps. In an X (formerly Twitter) post on August 8, a crypto analyst identified as ‘Sensei’ posed the question of whether Bitcoin’s recent price crash may have been a “shake out or bear trap.”
Related Reading: Analyst Who Predicted Bitcoin Crash To $54,500 Reveals Where Price Is Headed Next
A shake-out here is a general term used to describe a temporary price decline in a cryptocurrency aimed at forcing out weaker investors and pushing them to sell their holdings. In contrast, a bear trap occurs when the price of a crypto asset falls dramatically, causing investors to believe that the bear market has begun.
Sensei has predicted that Bitcoin’s bear trap is set to end this weekend, implying that bearish sentiments may be waning. In the previous weeks, BTC underwent a sharp price decline, falling drastically below the $50,000 mark. The cryptocurrency had crashed by more 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.
Related Reading: Bitcoin Open Interest Plunges As BTC Crosses $60,000
On the other hand, Sensei has been incredibly bullish on Bitcoin’s future outlook for the past months. He anticipates a strong bull run this year, 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 potential for a massive bull run this cycle. According to the chart analysis, BTC is still at the bottom (early phases) of its bull run, underscoring the need for stronger price fundamentals and greater stability to build more momentum.
Analyst Predicts $72,000 Bullish Target For Bitcoin
In another 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 likely to rise to new all-time highs.
At 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 potential for a price recovery.
Featured image from iStock, chart from Tradingview.com