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

Crypto market analysts say the Bitcoin ( BTC ) bear trap is officially over. Based on historical chart patterns, they are eyeing the next price breakout.

Was the 25% Bitcoin price drawdown a bear trap? 

A bear trap  is a form of coordinated but controlled selling that creates a temporary dip in an asset’s price. It typically comprises a 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 wrote in an Aug. 8 X post:

“So, that was a shake-out or a Bear trap?”

Moreover, Bitcoin fractals point to the imminent start of Bitcoin’s parabolic phase, noted the pseudonymous analyst Sensei  in an Aug. 6 X post.

Fractal patterns are used by technical traders to identify key support and resistance levels and potential trend reversals based on historical data.

Related: Solana hits new all-time high against Ethereum, but is $200 SOL price within reach?

Despite fractal patterns signaling a local bottom, Bitcoin’s daily trend could still turn negative, according to Aurelie Barthere, the principal research analyst at Nansen onchain analytics platform.

The analyst told Cointelegraph, sharing the below chart:

"Local bottoms 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 attachment 1 on BTC, the red line is about to cross below the green line).”

BTC price faces “difficult threshold” at $62K

Bitcoin’s next significant resistance to cross is at $62,000 before a chance to breach $70,000, and tackle the all-time high above, according to Barthere from onchain data analytics platform Nansen.

The analyst told Cointelegraph:

“BTC needs to hold above 62k. The other threshold of resistance is 70k-71k 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.”

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 data .

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.