Was the latest crypto crash certain to occur? Or was it engineered? Is the bull market over for good? Or is the market gaining momentum, getting ready for large actions? Your guess is pretty much as good as ours, however Moonrock Capital’s Simon Dedic is of the opinion that weak palms bought their foot caught in a bear lure. Once once more, they fell for a wealthy man’s trick.
Before we discover the case additional, let’s be certain that we’re on the identical web page by consulting Investopedia’s description of what occurs in a bear lure:
To enhance demand and get inventory costs to rise, establishments may push costs decrease in order that the markets look bearish. This causes novice traders to promote inventory. Once the inventory drops, traders bounce again into the market, and the inventory costs rise with the rise in demand.
And let’s learn precisely what Dedic mentioned:
— Simon Dedic (@scoinaldo) May 25, 2021
So, had been the sellers performed? Let’s discover out.
Related Reading | The Level Bitcoin Bulls Must Reclaim To Defend The Worst Monthly Selloff Ever
Where had been we earlier than this potential bear lure?
A mere month in the past, Bitcoin was going by an extended consolidation interval and Ethereum was booming. The “flippening” narrative returned and all eyes had been on the upcoming exhausting fork “London,” which is able to make ETH a deflationary asset. Then, the crypto crash occurred. And in fact, NewsBTC reported it:
Every week in the past, Ethereum was driving excessive after hitting a brand new all-time excessive of $4.4k. Since then, ETH has been caught in a downtrend, with issues getting a lot worse because of the crypto crash.
At one level, on the top of the panic promoting, the value of Ethereum dipped as little as $1.9k earlier than wicking again up. That’s a 57% loss from its all-time excessive.
The state of affairs doesn’t look as hopeless for the time being. Ethereum is on an uptrend and every coin prices $2.813 on the time of writing.
ETH value chart on Kraken | Source: ETH/USD on TradingView.com
Where are Ethereum and Bitcoin proper this minute?
The market appears to be like wholesome, even when it took a beating over the weekend. Both cryptocurrencies are slowly gaining traction at comparable velocity. The trip feels steady now, and everyone knows what which means… surprises forward. Coindesk has Steven McClurg, CIO at Valkyrie Investments, predicting what these surprises is likely to be:
“Due to the law of large numbers, it takes many more users today than it did a year ago to increase activity on the bitcoin network to the point it drives the price higher,” mentioned McClurg. “ETH is getting traction due to ETH 2.0 and those staking their assets to the network in anticipation of proof-of-stake, taking out supply as demand comes in.”
Is he proper? So far, stats and charts don’t present it. In reality, the tendencies are at the very same degree as when our sister web site Bitcoinist referred to as off the flippening:
Ethereum has nonetheless round 40% of Bitcoin’s market cap. And the share is precisely the identical if we evaluate the energetic nodes. It already surpassed BTC in all the things that has to do with transactions, from amount to charges generated. And ETH isn’t even shut in Google search curiosity and energetic addresses.
Related Reading | TA: Ethereum Faces Hurdles, Here’s What Could Trigger Strong Recovery
For a better have a look at the stats, test right here.
The Flippening, Market Cap chart | Source: Blockchain Center
Did we fall right into a bear lure, then?
If we did, we’re nonetheless in there. So, we don’t but have the required perspective to make a name. Certain indicators level that manner, although. For instance, this crypto fanatic appears to have recognized a historic sample:
#Bitcoin Macro bull-cycles
– Duration 9 Month’s (after prev. ATH)
– Bear lure in Month #6
– Duration 9 Month’s
– Bear lure in Month #5
– Duration 9 Month’s
– Bear lure in Month 6
2021 / Now: We’re in Month #6
— CryptoAmsterdam (@damskotrades) May 21, 2021
And this whale is undecided however hopeful:
Not able to rule out the likelihood that we’re someplace round right here: pic.twitter.com/mXLVq3hfez
— Whale (@elwhale) May 24, 2021
In any case, bear traps solely catch amateurs. This has nothing to do with a diamond-handed individual comparable to your self. Still, it’s good to know the place we’re standing. Or, a minimum of, to theorize about it.
So, $BTC to 100K and $ETH to 9K? Definitvely potential for us.
Featured Image by Kaylyn Mok on Unsplash - Charts by TradingView