A well-known crypto analyst, TechDev, believes Bitcoin is currently in a “bear trap” phase. This means that the price is being pushed down to scare off investors before a massive price surge.
Bitcoin’s Past Predicts its Future
TechDev’s analysis suggests that Bitcoin is mirroring its price action from 2017, right before a huge price jump. He’s also looking at the “net unrealized profit and loss” (NUPL) metric, which measures the overall sentiment of the market.
According to TechDev, Bitcoin is currently in the “belief” stage of a bull cycle. This is when the biggest price increases happen.
Bear Trap Before Big Gains
TechDev believes that Bitcoin is in a “bear trap” phase, where prices are being pushed down due to concerns about overvaluation and fears that the market cycle is ending. This, he says, is just before a massive price increase.
Indicators Point to a Bullish Future
TechDev is also looking at two indicators that have historically been good at predicting the start and end of Bitcoin price surges: the relative strength index (RSI) and the Chaiken Money Flow (CMF) index.
The RSI suggests that the current price drop isn’t over yet, while the CMF indicates that a big Bitcoin rally could be on the horizon.
Bitcoin’s Future is Uncertain
While TechDev’s analysis suggests that Bitcoin could be about to explode, it’s important to remember that the crypto market is highly volatile. No one can predict the future with certainty.
