A crypto analyst has shed light on the current stages of Bitcoin’s Bull-Bear Cyclewhich suggests that the cryptocurrency may be past a bear trap and preparing for substantial bullish rallies to new heights.

Was Bitcoin’s Sudden Crash a Trap or a Shock?

BTC price nearing $62,000, some crypto analysts say calling one of the most dramatic bear traps. In an X (formerly Twitter) after On August 8, a crypto analyst identified as “Sensei” asked whether The Recent Price Drop of Bitcoin may have been a ‘shaking or bear trap’.

A shake out here is a general term used to describe a temporary price drop in a cryptocurrency that aims to weed out weaker investors and get them to sell their holdings. Unlike a bear trap This happens when the price of a crypto asset drops dramatically, making investors think that the bear market has begun.

Sensei has predicted that Bitcoin’s bear trap is ending this weekend, implying that bearish sentiments may be waning. In the previous weeks, BTC has undergone a sharp price drop, drop drastically below the $50,000 markThe cryptocurrency was down more than 20%, mainly due to large-scale market liquidations.

Shedding more light on Bitcoin’s bull-bear cycle, crypto analyst Michael van de Poppe announced that Bitcoin’s massive price correction could eventually lead to the bear trap this cycle. Poppe revealed that this price drop could lead to widespread capitulationcausing a whopping $1.2 billion in investments affected by leveraged trading to be lost.

On the other hand, Sensei is incredible optimistic about Bitcoin’s future prospects the past few months. He expects a strong bull run this year, prediction that BTC’s bullish momentum could start as early as next week.

The analyst also has shared a chart of Bitcoin fractal points, indicating the potential for a massive bull run this cycle. According to the chart analysis, BTC is still at the bottom (early stages) of its bull runningwhich underscores the need for stronger fundamental price conditions and more stability to create more momentum.

Analyst Predicts Bullish $72,000 Target for Bitcoin

In another X-message On August 10, Sensei predicted that Bitcoin could rise to $72,000. The analyst shared a BTC price chart with two upward trendlines and indicated that current market trends and price movements indicate that Bitcoin’s price is likely to rise to new record 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 drop in 24-hour trading volume and its value, the pioneer cryptocurrency has successfully the $60,000 mark recapturedindicating a potential for price recovery.

Main image from iStock, chart from Tradingview.com