Markets
Why this cryptocurrency market is “a bear trap” and which coins does this trader support
Cryptocurrency trader Intuition declared the current market downturn a “bear trap”, comparing it to the bear trap of summer 2021 and highlighting the stronger positions of Bitcoin (CRYPTO: Bitcoin) AND Ethereum (CRYPTO: ET) this time.
What happened: Intuition he claims that the current summer bear trapping closely mirrors that of 2021. He points out that the 2021 bear trapping lasted from mid-April to mid-July, and lasted three months. He adds that we are currently in a similar bear trap for two months.
| Cryptocurrency | Price (April 15, 2024) | Current price |
| Bitcoin (CRYPTO: Bitcoin) | $62,919.10 | $62,459.48 |
| Ethereum (CRYPTO: ET) | $3,066.72 | $2,898.83 |
| Solana (CRYPTO: SOL) | $134.46 | $144.06 |
| Dogecoin (CRYPTO: DOGE) | $0.155273 | $0.1491 |
| Shiba Inu (CRYPTO: SHIB) | $0.00002273 | $0.00002363 |
One significant observation is the pattern of altcoin performance. In 2021, most altcoins dropped 60-70%, 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 strengthened the two major cryptocurrencies. He states it as “an extraordinary sign of strength”.
Reflecting on the aftermath of 2021’s bear trap, when quality altcoins surged 10x from lows, Intuitio believes a similar rebound is imminent. “The bottom is very close. We will pump very soon. And yes, ETH will lift the whole market,” he says.
However, he points out that not all assets will perform the same, some will pump more than others.
Read also: Cryptocurrency Expert Reveals How to Find “High-Risk, High-Reward” Meme Coins.
Because matter: Intuitio advises investors to stay focused and strategic, especially on faster memes and AI coins, recommending concentrated bets on up to four coins with large longs. He highlights the importance of the next six months, describing them as crucial to building significant positions in the market.
The trader suggests holding your position, staying alert and preparing for a surge in the cryptocurrency market. As he says, “Put your head up and keep grinding,” signaling that those who move wisely through this bear trap will emerge stronger in the coming market recovery.
However, the former Wall Street macro trader wizard from SoHo has a different situation point of view on this. He says it would be the biggest mistake to compare this cycle to 2021. He adds: “That cycle had trillions of stimulus and zero rates pumped into the economy. This cycle has had no injection of new money.”
What’s next: The influence of Bitcoin as an institutional asset class it is expected to be explored in depth at Benzinga’s next event The future of digital assets event on November 19th.
Read next: Trader Gets 553X Return on ‘Most Memeable Cat on the Internet’ 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.
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