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Capital Manager: Ethereum and Bitcoin sell-off was a ” bear trap“

Was the recent crypto crash pre-programmed? Or was it threaded? Is the bull market over forever? Or is the market gaining momentum and preparing for big moves? Simon Dedic of Moonrock Capital believes that weak hands have fallen into a bear trap.

A bear trap is defined as follows: to increase demand and make stock prices rise, institutions could push prices down so that markets look bearish. This causes inexperienced investors to sell shares. As soon as stocks fall, investors jump back into the market, and stock prices rise with the increase in demand.

Simon Dedic said the following in a tweet:

The state before the market-wide crypto crash

Just a month ago, Bitcoin was in a long consolidation phase and Ethereum was booming. The„flipping “ narrative returned and all eyes were on the upcoming hard fork„London & # 8220; that will make ETH a deflationary asset. Then followed the crypto crash.

About a week ago, it was Ethereum’s turn to hit a new all-time high of $4,400. Since then, ETH has been caught in a downtrend. At one point, at the height of panic sales, the price of Ethereum plunged to $1,900 before recovering rapidly.

At the moment, the situation does not look so hopeless. Ethereum is in an uptrend and the Ethereum price is currently at $2,876.




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Where are Bitcoin and Ethereum located?

The market looks a little better. Both cryptocurrencies are slowly gaining traction. Steven McClurg, CIO at Valkyrie Investments, said in an interview with Coindesk:

Because of the law of big numbers, it takes a lot more users today than it did a year ago to increase activity on the Bitcoin network in a way that drives up the price,” McClurg said. “ETH gets traction through ETH 2.0 and through those who bring their assets into the network in anticipation of proof-of-stake, which reduces supply while increasing demand.

Was it a bear trap?

If so, then we are still in it. So we do not yet have the necessary perspective to make a decision. However, certain indicators point in this direction. For example, this crypto enthusiast seems to have recognized a historical pattern:

Still, analysts claim that Bitcoin needs to take the $42,500 mark to show renewed bullish tendencies.

Bitcoin Price


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Text credits: newsbtc

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