Originally published on: August 09, 2024
Crypto market analysts are buzzing with excitement as they declare the end of the Bitcoin bear trap. With a careful eye on historical chart patterns, they anticipate the next big price breakout.
A bear trap is a strategic sell-off designed to create a temporary dip in an asset’s price, usually occurring within a long-term upward trend. The recent correction may have been a bear trap or a shake-out, as noted by the pseudonymous crypto analyst Sensei in an intriguing Aug. 8 post.
Moreover, Sensei pointed out in an Aug. 6 post that Bitcoin fractals indicate the beginning of a potential parabolic phase for the cryptocurrency. Fractal patterns help technical traders identify key support and resistance levels, as well as predict trend reversals based on historical data.
Even though fractal patterns are hinting at a local bottom, Aurelie Barthere, a principal research analyst at the Nansen on-chain analytics platform, suggested that Bitcoin’s daily trend could still take a negative turn. As illustrated in the chart shared by the analyst, the next significant resistance for Bitcoin is set at $62,000 before aiming to break through $70,000 and reach new all-time highs.
With notable resistance levels at $61,500 and $62,000, a move above $62,000 could trigger the liquidation of $845 million worth of leveraged short positions, according to CoinGlass data. However, it’s essential to note that this article does not provide investment advice, and readers should conduct their own research before making any financial decisions.
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