Why This Crypto Market Is 'A Bear Trap' And Which Coins This Trader Is Backing

Crypto trader Intuitio declared the current market downturn a "bear trap," comparing it to the 2021 summer bear trap while noting the stronger positions of Bitcoin BTC/USD and Ethereum ETH/USD this time around.

What Happened: Intuitio asserts that the present summer bear trap closely mirrors that of 2021. He points out that the bear trap in 2021 spanned from mid-April to mid-July, lasting three months. He adds that currently, we are two months into a similar bear trap.

Cryptocurrency	Price (April 15, 2024)	Current Price
Bitcoin BTC/USD	$62,919.10	$62,459.48
Ethereum ETH/USD	$3,066.72	$2,898.83
Solana SOL/USD	$134.46	$144.06
Dogecoin DOGE/USD	$0.155273	$0.1491
Shiba Inu SHIB/USD	$0.00002273	$0.00002363

A significant observation is the pattern in altcoin performance. In 2021, most altcoins dropped by 60-70%, while now they are down about 60%. However, the strength of Bitcoin and Ethereum sets the current scenario apart. In 2021, Bitcoin fell by 55%, but it is now only down 20%. Similarly, Ethereum declined by 65% in 2021 but is only down 30% now.

Intuitio attributes this relative strength to the influence of cryptocurrency ETFs, which have bolstered the two leading cryptocurrencies. He states this as "an amazing sign of strength."

Reflecting on the aftermath of the 2021 bear trap, where quality altcoins surged 10x from their lows, Intuitio believes a similar rebound is imminent. "Bottom is very close. We are going to pump very soon. And yes, ETH will lift the whole market," he asserts.

However, he emphasizes that not all assets will perform equally, with some pumping more than others.

Also Read: Crypto Expert Reveals How To Find ‘High-Risk High Reward’ Meme Coins

Why It Matters: Intuitio advises investors to remain focused and strategic, particularly on the fastest meme and AI coins, recommending concentrated bets on a maximum of four coins with big longs. He stresses the importance of the next six months, describing them as crucial for building significant positions in the market.

The trader suggests holding your ground, staying observant, and preparing for a surge in the crypto market. As he puts it, "Hold up your head and keep grinding," signaling that those who navigate wisely through this bear trap will emerge stronger in the impending market upswing.

However, Former Wall Street Macro Trader Wizard Of SoHo has a different viewpoint on this. He states that it would be the biggest mistake to compare this cycle to 2021. He adds, "That cycle had trillions in stimulus and zero rates injected into the economy. This cycle has had zero new money injection."

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: Trader Nets A 553X Return With Meme Coin Of ‘The Most Memeable Cat On The Internet’

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image created using artificial intelligence with Midjourney.