A Temporary Setback?
Crypto analyst Merlijn believes Bitcoin’s recent plunge to $91,000 was a “bear trap”—a deceptive price drop designed to shake out weaker investors. This isn’t the first time; similar dips happened during the 2017 and 2021 bull runs. After the initial sell-off, Bitcoin quickly bounced back above the crucial $100,000 mark.
What Caused the Drop?
The price drop was triggered by concerns over a potential trade war. Donald Trump’s tariffs on Mexico, Canada, and China caused a ripple effect, with retaliatory tariffs announced by Mexico and Canada. However, a temporary pause on these tariffs eased market anxieties.
The Road to Recovery
The quick recovery to over $100,000 has reignited optimism. Altcoins (other cryptocurrencies) also saw a rebound. Merlijn suggests investors can either be shaken out by these dips or position themselves for potentially huge gains. He shared a chart indicating the bull market still has legs, predicting further phases of optimism, fear of missing out (FOMO), and euphoria before the peak.
Future Predictions
Other analysts weigh in:
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Rekt Capital: Bitcoin needs a daily close above $101,000 and a successful retest to confirm a continued uptrend, potentially reaching $103,000. A major resistance level sits around $106,148.
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Titan of Crypto: The bull market is still on as long as Bitcoin maintains a monthly close above the 38.2% Fibonacci retracement level. A continuation pattern could push Bitcoin as high as $117,000.
Current Status
At the time of writing, Bitcoin is trading around $99,500, showing a 5% increase in the last 24 hours.
