Cryptocurrency News

Ethereum and bitcoin saleoff was a “bear trap”


Was the crypto crashed recently? Or was it the engineer? Is the bull market over for good? Or is the market gaining momentum, preparing for big movements? Your guess is as good as ours, but Simon Dedick of Moonrock Capital is of the opinion that weak hands have trapped his leg in a trap. Bear Web. Once again, he fell into the hands of a rich man.

Before we take the matter further, let’s make sure we are on the same page through consultation Investopediaa. Description of what happens in Bear Trap:

To increase demand and increase stock prices, institutions can reduce prices so that the market shows a downturn. This causes novice investors to sell the stock. Once the stock collapses, investors jump back into the market, and stock prices rise with an increase in demand.

And let’s read exactly what Dedic said:

So, were the vendors played? let’s find out.

Related reading | Bitcoin bull market levels should be recovered to defend the worst monthly sell-off ever

Where were we before possible Bear Trap?

A month ago, bitcoin was going through a long consolidation period and Ethereum was booming. “rolling overThe narrative returned and all eyes were on the upcoming hard fork “London”, which would make ETH a deflationary asset. Then, the crypto crash occurred. and of course, NewsBTC reported this:

A week ago, Ethereum reached a new high of $ 4.4k after hitting an all-time high. Since then, ETH has been stuck in a downtrend, and things have gone awry due to the crypto crash.
At one point, at the height of panic sales, the price of Ethereum was as low as $ 1.9k before it rose back up. This is a 57% loss from its all-time high.

At the moment, the situation is not looking as bleak. Ethereum is on an uptrend and each The coin Cost of $ 2.813 at time of writing.

ETH price chart on Kraken | Source: ETH/USD on TradingView.com

Where are Ethereum and Bitcoin in this minute?

The market looks healthy even though it has declined over the weekend. Both cryptocurrencies are gaining traction slowly at comparable speeds. The ride feels stagnant now, and we all know what that means… surprise ahead. Coindesk CCO of Valkyrie Investments, Steven McClurg, predicts what those surprises might actually be:

“Due to the law of large numbers, it takes many more users today than a year ago to increase activity on the bitcoin network,” McClurg said. “ETH 2.0 is gaining traction and those who network their assets in anticipation of a proof-of-stake remove supply when demand arrives.”

Is that correct? So far, the figures and charts do not show this. In fact, the trends are at the same level as our sister site Bitcoinist stopped flipping:

Ethereum still holds about 40% of the market cap of bitcoin. And if we compare active nodes, the percentage is exactly the same. It has already outpaced BTC in everything related to transactions, from quantity to fees. And ETH is not even close in Google search interest and active addresses.

Related reading | TA: Ethereum faces hurdles, strong recovery can be triggered here

To take a closer look at the data, Check here.
Bear Trap, Flipping Chart - Blockchain Center

The Flippening, Market Cap chart | Source: Blockchain Center

Did we fall into one Bear Trap, then?

If we did, we are still there. Therefore, we do not yet have the necessary perspective to call. However, some indicators point to this. For example, it seems that this crypto enthusiast has identified a historical pattern:

And this whale is undecided but hopeful:

In any case, Bear Traps catch only amateurs. It has nothing to do with a person with a diamond hand like you. Still, it’s nice to know where we stand. Or, at least, to theorize about it.

So, $ BTC to 100K and $ ETH to 9K? It is definitely possible for us.

Featured Image by Kaylyn Mok on Unsplash - Charts by TradingView





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Avinash is a blogger, Enterprenuer, marketer and author. He is very good affiliate marketer and Product Reviewer.
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