Bitcoin Poised for Bear-Trap Phase Before Potential Upswing, Crypto Analyst Suggests
A prominent crypto analyst known as TechDev has suggested that Bitcoin (BTC) might be experiencing a bear trap to eliminate weak investors before a significant price surge. The analyst, who communicates with a substantial following on the social media platform X, has presented a Bitcoin chart indicating similarities to the pre-parabolic price movement of 2017 after an accumulation period of about 1,200 days.
TechDev’s analysis incorporates the net unrealized profit and loss (NUPL) metric, which assesses market sentiment by tracking the unrealized gains and losses of all circulating coins. According to the chart, Bitcoin’s NUPL progresses through stages during a bullish cycle: hope, optimism, belief, and euphoria. The analyst suggests that Bitcoin is currently in the belief stage, where major rallies typically occur.
Additionally, TechDev has shared a chart outlining what he identifies as the 16 different phases of the Bitcoin market cycle. He believes that Bitcoin is presently in the “bear trap” phase, characterized by a correction driven by concerns of overvaluation and premature fears of the cycle ending, just before a substantial surge into the euphoric zone.
The analyst has also examined two indicators that he claims have accurately predicted the start and end of previous Bitcoin blow-off peaks: the relative strength index (RSI) and the Chaiken Money Flow (CMF) index. While the RSI serves as a momentum indicator, the CMF calculates a volume-weighted average of accumulation and distribution over a specified period.
In TechDev’s assessment, the RSI has yet to encounter a descending resistance line that marked the conclusion of bull markets in past cycles. Concurrently, the CMF has recently surpassed a resistance level that has historically signaled the onset of significant Bitcoin rallies.
As of the current moment, Bitcoin is trading at $55,282. TechDev’s insights and charts provide a perspective on potential market movements and the stages within the Bitcoin cycle, suggesting that the cryptocurrency may be poised for notable developments in the near future.
