Markets
Why this crypto market is a ‘bear trap’ and which coins this trader is supporting
Crypto Trader Intuition declared the current market downturn a “bear trap”, comparing it to the summer 2021 bear trap, while also noting the strongest positions of Bitcoin (CRYPTO: Bitcoin) It is Ethereum (CRYPTO: ETH) this time.
What happened: Intuition states that the current summer bear trap closely mirrors that of 2021. He points out that the 2021 bear trap lasted from mid-April to mid-July, lasting three months. He adds that we are currently two months into a similar trap.
| Cryptocurrency | Price (April 15, 2024) | Current price |
| Bitcoin (CRYPTO: Bitcoin) | US$62,919.10 | US$62,459.48 |
| Ethereum (CRYPTO: ETH) | US$3,066.72 | $2,898.83 |
| Solana (CRYPTO: SUN) | US$134.46 | US$144.06 |
| Dogecoin (CRYPTO: DOGE) | $0.155273 | $0.1491 |
| Shiba Inu (CRYPTO: SHIB) | $0.00002273 | $0.00002363 |
One significant observation is the performance pattern of altcoins. In 2021, most altcoins fell 60-70%, while now they are down around 60%. However, the strength of Bitcoin and Ethereum differentiates the current scenario. In 2021, Bitcoin fell 55%, but now it is only down 20%. Similarly, Ethereum fell 65% in 2021, but is now only down 30%.
Intuitio attributes this relative strength to the influence of cryptocurrency ETFs, which have bolstered the top two cryptocurrencies. He claims this as “an incredible sign of strength”.
Reflecting on the fallout from the 2021 bear trap, where quality altcoins rallied 10x from their lows, Intuitio believes a similar recovery is imminent. “The bottom is very close. We will pump very soon. And yes, ETH will lift the entire market,” he says.
However, he emphasizes that not all assets will perform equally, with some pumping more than others.
Read too: Crypto Expert Reveals How to Find ‘High Risk, High Reward’ Meme Coins
Why this matters: Intuitio advises investors to stay focused and strategic, especially on the fastest memes and AI coins, recommending concentrated bets on a maximum of four coins with large long positions. He highlights the importance of the next six months, describing them as crucial to building significant market positions.
The trader suggests holding your position, staying alert and preparing for a surge in the crypto market. In his words: “Put your head up and keep working,” signaling that those who wisely navigate through this bearish trap will emerge stronger in the imminent market recovery.
However, Former Wall Street Macro Trader Wizard Of SoHo Has A Different View point of view on this. He states that it would be the biggest mistake to compare this cycle with 2021. He adds: “This cycle had trillions in stimulus and zero taxes injected into the economy.
What is the next: The influence of Bitcoin as an institutional asset class expected to be thoroughly explored at Benzinga’s next event Future of digital assets event on November 19th.
Read next: Trader Earns 553X Returns on ‘Internet’s Most Memorable Cat’ Meme Coin
This content was produced in part with the help of AI tools and was reviewed and published by Benzinga editors.
Image created using artificial intelligence with Midjourney.
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