Bitcoin

Sensei

Crypto market analysts say the Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) bear trap is officially over. Based on historical chart patterns, they are eyeing the next price breakout.
<h2 id="was-the-25-bitcoin-price-drawdown-a-bear-trap">Was the 25% Bitcoin price drawdown a bear trap?&nbsp;</h2>
A <a href="https://cointelegraph.com/explained/what-is-a-bear-trap-in-trading-and-how-to-avoid-it">bear trap</a>&nbsp;is a form of coordinated but controlled selling that creates a temporary dip in an asset’s price. It typically comprises a&nbsp;significant correction during a long-term uptrend.
The latest correction may have been a bear trap or a shake-out, according to pseudonymous crypto analyst Sensei, who <a href="https://x.com/SenseiBR_btc/status/1821555670262432203" target="_blank" rel="noopener nofollow">wrote</a> in an Aug. 8 X post:
<blockquote data-ct-non-breakable="true">
 “So, that was a shake-out or a Bear trap?”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/7d55e532-1703-456d-a592-3612ad82d05b.jpeg" alt="Bitcoin bear trap over? BTC price fractal hints at parabolic move next" title="">
 <figcaption style="text-align: center;">
 Bitcoin bear trap. Source: Sensei/X
 </figcaption>
</figure>
Moreover, Bitcoin fractals point to the imminent start of Bitcoin’s parabolic phase, <a href="https://x.com/SenseiBR_btc/status/1820883566701768782/photo/1" target="_blank" rel="noopener nofollow">noted</a>&nbsp;Sensei&nbsp;<a href="https://x.com/SenseiBR_btc" target="_blank" rel="noopener nofollow"></a>in an Aug. 6 X post.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/52b5a316-425b-4d6f-b88f-94c0c19de5d3.jpeg" alt="Bitcoin bear trap over? BTC price fractal hints at parabolic move next" title="">
 <figcaption style="text-align: center;">
 Bitcoin fractals. Source: Sensei/X
 </figcaption>
</figure>
Fractal patterns are used by technical traders to identify key support and resistance levels and potential trend reversals based on historical data.
Related: <a href="https://cointelegraph.com/news/solana-new-high-against-eth-sol-price-200">Solana hits new all-time high against Ethereum, but is $200 SOL price within reach?</a>
Despite fractal patterns signaling a local bottom, Bitcoin’s daily trend could still turn negative, according to Aurelie Barthere, principal research analyst at Nansen onchain analytics platform. 
The analyst told Cointelegraph, sharing the below chart:
<blockquote data-ct-non-breakable="true">
 “Local bottoms, yes, but the daily trend in BTC (and Ether) still looks negative: The 50-day moving average is about to cross below the 200-day moving average (see attachment 1 on BTC; the red line is about to cross below the green line).”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/e1c036ba-a9bc-41db-809f-40cab45aa540.jpg" alt="Bitcoin bear trap over? BTC price fractal hints at parabolic move next" title="">
 <figcaption style="text-align: center;">
 BTC/USD, 1-day chart. Source: Nansen
 </figcaption>
</figure>
<h2 data-ct-non-breakable="true" id="btc-s-price-faces-difficult-threshold-at-62-000">BTC’s price faces “difficult threshold” at $62,000</h2>
Bitcoin’s <a href="https://cointelegraph.com/news/bitcoin-price-must-flip-62k-avoid-death-cross">next significant resistance to cross is at $62,000</a> before a chance to breach $70,000 and tackle the all-time high above, according to Barthere.
The analyst told Cointelegraph:
<blockquote data-ct-non-breakable="true">
 “BTC needs to hold above $62,000. The other threshold of resistance is $70,000–$71,000 or the all-time high. Psychologically, a few traders have been hurt by the March and July sell-offs, and this might be a very difficult threshold to cross.”
</blockquote>
Bitcoin faces significant resistance at $61,500 and $62,000. A rally above $62,000 would liquidate $845 million worth of cumulative leveraged short positions, according to CoinGlass <a href="https://www.coinglass.com/pro/futures/LiquidationMap" target="_blank" rel="noopener nofollow">data</a>.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/b18707fe-05d6-4e32-b352-955c351841e2.png" alt="Bitcoin bear trap over? BTC price fractal hints at parabolic move next" title="">
 <figcaption style="text-align: center;">
 Bitcoin Exchange Liquidation Map. Source: CoinGlass
 </figcaption>
</figure>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin bear trap over? BTC price fractal hints at parabolic move next

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