$BTC Price Alert: Beware of Potential Bull Trap!
We’ve witnessed market traps like this before. Previously, they unfolded on the downside, but now, Bitcoin seems to be climbing into an upward trap. Despite appearances, this rally might not be sustainable. With 24-hour trading volume reaching record highs, exceeding $40 billion, market participants are being drawn into aggressive buying. However, such movements often precede sharp price reversals. Both small and large traders are at risk of being caught in this rally, just as we saw two months ago when $BTC hit $72K before plunging to $49K, leading to significant losses across the board.
It’s important to understand that information gaps can make these sudden market moves even more unpredictable. As we’ve observed in the past, such shifts are often driven by larger players—whales—manipulating the market. External factors like rate cuts from the Fed and changes in employment data can further complicate the situation. Without a full picture, traders are left vulnerable to unexpected reversals. The best strategy in these situations is to pause trading during uncertain periods and wait for clearer signals. A disciplined approach, backed by thorough research and technical analysis, is essential to avoid being trapped.
Bitcoin's recent price action has also formed two distinct W patterns—one large and one smaller. The first trap occurred around $49K, while the second, unfolding now at $68K, still shows upward momentum. However, we must remain cautious, as it’s impossible to predict when the whales will exit, potentially triggering a steep decline. Before the upcoming elections, BTC could retrace to the $40K–$45K range.
Stay vigilant, follow the charts closely, and avoid chasing the hype. Like and share this post if you found the insights useful, and follow me for more timely market updates. Thank you for your time!
