Crypto market analysts say Bitcoin 
BTCUSD The bear trap is officially over. Based on historical chart patterns, they are watching for the next price breakout.
Was Bitcoin’s 25 percent price drop a bear trap?
A bear trap is a form of coordinated but controlled selling that causes a temporary decline in the price of an asset. It typically involves a significant correction during a long-term uptrend.
According to pseudonymous crypto analyst Sensei, the recent correction may have been a bear trap or a market shakeout. He wrote in an August 8 X-post:
“So, was that a concussion or a bear trap?”
In addition, Bitcoin fractals indicate the imminent start of Bitcoin’s parabolic phase, noted pseudonymous analyst Sensei in an August 6 X-post.
Technical traders use fractal patterns to identify key support and resistance levels, as well as potential trend reversals, based on historical data.
Related: Solana hits new all-time high against Ethereum, but is a $200 SOL price within reach?
Although fractal patterns signal a local bottom, Bitcoin’s daily trend could still turn negative, according to Aurelie Barthere, senior research analyst at on-chain analytics platform Nansen.
The analyst told Cointelegraph that this is the following chart:
“Local lows yes, but the daily trend in BTC (and ETH) still looks negative: the 50-day moving average is about to cross below the 200-day moving average (see Appendix 1 on BTC, the red line is about to cross below the green line).”
BTC price faces “difficult threshold” at $62,000
According to Barthere of onchain data analytics platform Nansen, the next significant resistance Bitcoin needs to overcome is at $62,000 before it has a chance of breaking $70,000 and tackling the all-time high above it.
The analyst told Cointelegraph:
“BTC needs to stay above 62,000. The other resistance level is 70,000-71,000 or the all-time high. Psychologically, some traders were hurt by the sell-offs in March and July and this level could be very difficult to break.”
Bitcoin is facing significant resistance at $61,500 and $62,000. A move above $62,000 would liquidate $845 million worth of cumulative leveraged short positions, according to Coinglass data.
This article does not contain investment advice or a recommendation. Every investment and trading decision involves risk and readers should conduct their own research in making their decision.
