dailyhodl.com
Pseudonymous crypto analyst TechDev says that Bitcoin (BTC) and digital assets are in the middle of a massive bear trap before the next leg up.
TechDev shares a chart with his 467,000 followers on the social media platform X that suggests Bitcoin’s market cycles happen in a series of stages starting with “accumulation” and ending in a bull trap.
According to TechDev, BTC is in the “bear trap” phase of the cycle, which precedes “renewed optimism,” “FOMO” (fear of missing out) and “euphoria” stages before topping out and entering the bull trap.
The analyst also believes that USDT dominance in the crypto markets looks bearish, implying that stablecoins will soon be traded en masse for other digital assets, boosting prices.
TechDev recently compared Bitcoin’s historical price action to the Nikkei 225, the biggest Japanese stock market index.
Based on TechDev’s charts, the trader suggested that Bitcoin could go as high as $760,000 sometime between 2028 and 2029 before witnessing a multi-year bear market, similar to the Nikkei in the 1990s.
Last month, TechDev noted that he was optimistic about the recent downturn in the crypto market.
“Obviously, there is extreme fear in the market. The last two weeks were filled with ‘told you’ comments from doomer bears – on a retest to $48,000 levels they previously said would never be reached the last time they were doom-posting at $25,000.
Exactly what I like to see. The fact that it came at a time when global macro conditions are pointing up makes it nothing more than two weeks of loud noise to me. More like the last six months.
It’s usually the case in all speculative markets, but the last two years have reflected this more than any other time in the crypto market – it doesn’t move up until X is scared absolutely shitless. That was the case at $15,000 after the FTX crash, at $20,000 after regional banks were failing, at $38,000 after the brutal post-ETF wick, and now.
What you’ll also recall is how much sentiment can whiplash in a couple of weeks. Expecting it again. All the while, the global cycle continues to point higher.”
At time of writing, Bitcoin is worth $54,435, up slightly on the day.
Generated Image: Midjourney