Market Makers Signal Bear Trap Amid Bitcoin Price Stagnation
Bitcoin (BTC) appears to be setting the stage for a significant short squeeze in the coming weeks as market makers reportedly engineer a bear trap. According to trader Luca, recent price action mirrors the consolidation pattern observed in late 2024, suggesting that the current weakness may be misleading.
Price Action Reflects Strategic Rangebound Movement
Luca highlights that since Bitcoin peaked in mid-August, the price has failed to make new highs, but crucially, it has not swept previous highs either. This pattern indicates that market makers might be intentionally keeping the market rangebound to bait short sellers into complacency.
“Shorts are being protected in the short term,” Luca notes, implying that the market is designed to maintain a false sense of security among bearish traders. He draws parallels to Bitcoin’s extended sideways movement during the seven-month consolidation phase of 2024, which preceded a breakout in November of that year.
Potential for Significant Short Liquidation Event
This extended consolidation encourages bears to increase their short positions, setting up ideal conditions for a short squeeze. Luca argues that this dynamic, while counterintuitive, is a bullish indicator for Bitcoin’s near-term trajectory.
Recent Price Movements Support Bullish Outlook
Despite widespread bearish expectations, Bitcoin’s price rebounded to $113,000, triggering approximately $100 million in short liquidations over 24 hours, according to CoinGlass data. This surge has led some analysts, including trader Rekt Capital, to assert that Bitcoin has confirmed its breakout from the recent correction phase.
Rekt Capital emphasized that a daily close or retest around $113,000 could solidify the upward trend, potentially driving prices higher.
Market Caution Advised
While these analyses suggest a bullish setup, market conditions remain volatile. Bitcoin’s price is subject to rapid changes, and traders should conduct thorough research and exercise caution. This article does not constitute investment advice.
