Analysts See Current Crypto Market Cycle Dip as Bear Trap, Not Peak
Crypto markets have retraced 7.3% since the August 14 all-time high, with Bitcoin down 7.5% and Ethereum off 10%. Despite growing bearish chatter about a cycle top, leading economist Alex Krüger argues the four-year crypto market cycle is still intact and that corrections from new highs are normal. He points out that recent cycle dynamics have been driven more by Federal Reserve policy shifts than by Bitcoin alone, and expects a dovish pivot to reignite bullish momentum. Historical data shows prior bull runs—2011, 2013, 2017, 2021—saw “bear trap” pullbacks in month six before fresh highs around month nine. Analyst CryptoCon’s Halving Cycles Theory also places the next cycle top near the Nov. 28 halving, over three months away. Traders should watch Fed Chair Jerome Powell’s Jackson Hole remarks for clues on rate cuts. Overall, experts view this dip as a bear trap within an ongoing crypto market cycle, reinforcing a bullish outlook for Bitcoin and Ethereum.
Bullish
The article highlights that the current 7.3% correction is consistent with past “bear trap” pullbacks in healthy crypto market cycles, not signs of a terminal peak. Analysts like Alex Krüger emphasize that monetary policy, especially Fed rate decisions, drive broader market dynamics, and a forthcoming dovish shift could fuel renewed upside. Historical patterns from 2011, 2013, 2017, and 2021 show six-month corrections followed by fresh highs, suggesting traders should treat this dip as a buying opportunity. The anticipated November halving and potential Fed rate cuts further support a bullish outlook, indicating both short-term rebounds and long-term cycle continuation.