Bitcoin (BTC) Is Probably in the Midst of a Bear Trap to Shake Out Weak Hands Before a Large Move Up in Price, Says Crypto Analyst TechDev
- 王林Original
- 2024-07-12 15:55:20761browse
The pseudonymous analyst shares with his 464000 followers on the social media platform X a Bitcoin chart that suggests BTC is mirroring its 2017
Renowned crypto analyst TechDev says that Bitcoin (BTC) is likely setting up a bear trap to shake out weak hands before a strong move up in price.
The pseudonymous analyst tells his 464,000 followers on social media platform X that a Bitcoin chart shows BTC is echoing its 2017 pre-parabola price action after about 1,200 days of accumulation.
TechDev’s chart also features the net unrealized profit and loss (NUPL) metric, which gauges the overall sentiment of market participants by tracking the unrealized gains and losses of all coins in circulation.
According to his chart, the analyst sees Bitcoin’s NUPL moving through four distinct phases in a bull cycle: hope, optimism, belief and euphoria. The analyst suggests that Bitcoin is in the belief stage where the biggest rallies of the bull run occur.
“Bitcoin.”
TechDev shares another chart showing what he believes are the 16 different stages of the Bitcoin market cycle.
He believes that BTC is currently in the “bear trap” phase where a “correction fed by overvaluation concerns and pre-mature fears that the cycle has ended” brings prices down, just before a strong expansion into the euphoria zone.
TechDev also examines two indicators that he says have a strong track record at calling the beginning and end of previous Bitcoin blow-off tops: the relative strength index (RSI) and the Chaiken Money Flow (CMF) index. The RSI is a momentum indicator while the CMF is a volume-weighted average of accumulation and distribution over a given period.
Says TechDev,
“RSI calls the tops. CMF calls the blow-offs.”
Looking at the trader’s chart, he appears to be suggesting that the RSI has yet to hit a descending resistance line that signaled the end of bull markets in previous cycles. Meanwhile, the CMF has just broken above a resistance level that has previously signaled the start of major BTC rallies.
At time of writing, Bitcoin is trading for $55,282.
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