Cryptocurrency trader Intuition declared the current market downturn a “bear trap,” comparing it to the bear trap of summer 2021, while noting the strongest positions of bitcoin BTC/USD and Ethereum ETH/USD In this age.
What happened: Intuition it states that the current summer bear trap closely reflects that of 2021. He notes that the 2021 bear trap ran from mid-April to mid-July and lasted three months. He adds that we have currently been in a similar bear trap for two months.
| Cryptocurrency | Price (April 15, 2024) | Actual Price |
| bitcoin BTC/USD | $62,919.10 | $62,459.48 |
| Ethereum ETH/USD | $3,066.72 | $2,898.83 |
| solarium SOL/USD | $134.46 | $144.06 |
| Dogecoin DOGE/USD | $0.155273 | $0.1491 |
| Shiba Inu SHIB/USD | $0.00002273 | $0.00002363 |
An important observation is the pattern in the performance of altcoins. In 2021, most altcoins fell between 60% and 70%, while now they are down around 60%. However, the strength of Bitcoin and Ethereum distinguishes 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 boosted the two major cryptocurrencies. He claims it as "a surprising sign of strength."
Reflecting on the fallout from the 2021 bear trap, where quality altcoins surged 10x from their lows, Intuitio believes a similar bounce is imminent. "The bottom is very close. We are going to pump very soon. And yes, ETH will drive the entire market," he says.
However, he emphasizes that not all assets will perform equally, and some will pump more than others.
Also read: Crypto Expert Reveals How to Find 'High Risk, High Reward' Meme Coins
Because it is important: Intuitio advises investors to stay focused and strategic, especially on the fastest meme 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 and describes them as crucial to building significant positions in the market.
The trader suggests holding firm, remaining vigilant, and preparing for a surge in the cryptocurrency market. As he says, "Put your heads up and keep working," indicating that those who navigate wisely through this bearish trap will emerge stronger in the impending market rally.
However, the former Wall Street macro trading wizard from SoHo has a different opinion. point of view in this. He states that it would be the biggest mistake to compare this cycle with 2021. He adds: "That cycle had trillions in stimulus and zero rates injected into the economy. This cycle has not had any injection of new money."
Whats Next: The influence of Bitcoin as an institutional asset class It is expected to be further explored in the next Benzinga meeting. The future of digital assets event on November 19.
Read next: Trader Earns 553X Return on 'Internet's Most Memeable Cat' Meme Coin
This content was partially produced with the help of artificial intelligence tools and was reviewed and published by Benzinga editors.
Image created using artificial intelligence with Midjourney.
