Bear markets, like bull seasons, lead to the formation of certain behavioral patterns or the development of past patterns. If you follow the markets for a long time, price movements that surprise many people become normalized for you. This is true in many areas, including cryptocurrency markets with high volatility.
Yesterday, when the price was still around $12, we mentioned that CYBER Coin investors were expecting a great danger. In bear markets, unsustainable inflated price movements become standardized. From this perspective, the recent decline was not surprising for a significant portion of cryptocurrency investors. We shared the following chart yesterday and made the following remarks:
“Then we saw that the price continued to rise with the excessive demand from Asian investors. Remember the rise of PEPE Coin in early June. Abnormal increases that last a maximum of a few weeks are seen in bear markets. PEPE Coin was an example that needed to be learned from. Now CYBER Coin seems to be following the same path. In the short term, if profit-taking starts, we may see a new low after the peak of $16.2 critical regions of $10.68 and $8.6.”
At the time of writing, the price of CYBER Coin is $7.3. The popular altcoin has also dropped below $8.6. Those who shorted the market saw this movement as an opportunity. However, when the rise to $16 started, those who shorted the market were also hoping to make money from that movement when the price was about to exceed $10. But only a group managed to escape the liquidation of their positions.
The rise in PEPE, CYBER, or many other altcoins was like a flash in the pan during bear markets. We should see that movements similar to bull-like movements (the situation where altcoins become excessively valued due to high risk appetite) in low-volume markets are traps. If you see someone talking about a price fueled by increasing risk appetite and talking about long-term growth in the relevant altcoin, ask them one thing. Why is the excessive valuation of X token not a trap when so many major altcoins are trading near their all-time lows?
As for the price, the $7 region is an important support level on the 4-hour chart despite its short history. The $6.5-$7 region remained strong in the movement that started on August 29. Yesterday, this range was tested, and for now, the price is holding above the critical region. If there are closings below this region, gains will be wiped out after $5.2 and $4.64, and the price will return to the $3.9 region. However, closings above $8.6 (perhaps a trap) can trigger a new rise. Then, overcoming the $9.24 and $12.3 regions is expected. In the most optimistic scenario, closings above $13.7 can pave the way for a new all-time high.