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Analyst Calls Bitcoin Surge a “Bull Trap,” Predicts Further Drop

Cryptocurrency analyst IncomeSharks has offered an opinion on the current cryptocurrency market situation.

Bitcoin on mousetrap
Bitcoin on mousetrap

According to the Twitter account handler, the bears in the Bitcoin market are currently at the “Denial Stage.” He implied that the current price rally is a bull trap and a manipulation, notably saying that a panic stage will follow.

Wall Street Cheat Sheet Analysis of Market Cycle

IncomeShark’s tweet was accompanied by a pictorial illustration using an analysis sheet from the Wall Street Cheat Sheet. The analysis tool capitalized on the emotional aspect of traders’ behavior and was used to predict the dominant state of mind under different market conditions.

Bull standing on coins
Bull standing on coins

IncomeSharks Predicts Bitcoin Consolidation

From IncomeShark’s interpretation, the current Bitcoin rally is only a momentary surge that will not last long. The account handler predicts that the Bitcoin price will fall further down and go into consolidation. If this interpretation is correct, a sideways movement will follow the predicted drop before a bottom forms ahead of a sustainable bull run.

Different Opinions on Current Market Conditions

One of IncomeShark’s responders, Domokos Csaba, offered a different opinion on the current market condition. Csaba thinks that the panic stage has already been exhausted, and the market is one stage ahead, the “Anger Stage.” For Csaba, the market is closer to the sustainable bull run than IncomeShark thinks.