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A seasoned crypto analyst has warned that the recent Bitcoin (BTC) price action could also be setting the stage for main liquidity traps, echoing patterns seen in previous cycles. Because the main cryptocurrency aims for new all-time highs, the pundit means that market makers may very well be intentionally engineering circumstances for bear traps earlier than triggering a strong breakout.
Bitcoin Path To ATH Riddled With Liquidity Traps
Crypto market professional Luca has shared intriguing insights into Bitcoin’s newest worth conduct, arguing that the market could also be getting into a traditional liquidity trap phase allegedly orchestrated by market makers. The analyst stated in an X (previously Twitter) publish that Bitcoin’s worth motion since topping out in late May 2025 has adopted a suspicious sample. He famous that regardless of experiencing a number of worth rallies, not a single native excessive has been swept up to now few weeks.
Associated Studying
Luca means that this uncommon worth construction may very well be a deliberate setup, giving the phantasm of stability and providing false conviction in bearish positions. The analyst warns that market makers have probably influenced this market conduct by baiting shorts into getting into or holding positions with the belief that Bitcoin may proceed to be capped beneath resistance. Ideally, this underpins the idea that bear traps are doubtlessly being set as BTC gears up for its subsequent bullish rally.
Notably, a number of key resistance ranges at the moment are stacked tightly between $109,000 and $112,000, as highlighted on the analyst’s 4-hour Bitcoin chart. Whereas BTC has been consolidating just under these ranges, forming what seems to be a possible base, Luca argues that this worth conduct shouldn’t be a coincidence. Relatively than market weakness, he believes the subdued worth motion displays a calculated effort by market makers to encourage bearish complacency.
The pundit interprets the deliberate avoidance of liquidity above these resistance strains as a sign that deeper bear traps are probably being laid. Luca has revealed that this setup may very well be laying the groundwork for a sudden short squeeze, doubtlessly igniting a pointy transfer towards a brand new all-time excessive for Bitcoin.
Analyst Says BTC 2024 Breakout Again In Play
Including historic context to his evaluation, Luca compares the present market construction to a prolonged consolidation phase noticed all through 2024. On the second 8-hour chart, a transparent trendline of resistance could be seen capping Bitcoin’s upside for many of the earlier 12 months.
Associated Studying
The chart exhibits that worth motion persistently failed to interrupt above the descending barrier, with a number of makes an attempt being rejected between March and October. Every rejection was marked by unswept highs—just like the present market setup and suggesting that shorts had been systematically being protected.
This compression lastly resolved in November 2024, when Bitcoin erupted by way of the resistance and launched a parabolic transfer to new highs. That breakout was fueled by the precise mechanism Luca now believes is in movement. With historical patterns now resurfacing, the analyst maintains that Bitcoin’s ongoing suppression and untouched highs are a part of a blueprint that signifies a potential bullish transfer towards uncharted worth territory.
Featured picture from Pixabay, chart from Tradingview.com
