Bitcoin 'Bull Market Trap' Exposed! Breaking Key Support, the Eye of the Storm in the Crypto Market
On Friday, Bitcoin experienced violent fluctuations, dipping to a low of $102,000 before ultimately settling at $104,871, plummeting 2% within 24 hours. Attempts to break through the resistance at $106,000 faced strong backlash, with trading volume surging by 36%, intensifying market turbulence!
Behind the scenes: Iranian nuclear facilities were hit by airstrikes, escalating geopolitical tensions; uncertainty from Trump's sudden tariff policy; massive expiration of crypto options triggered a tug-of-war between bulls and bears, with the situation changing rapidly!
Expert Insights
10x Research bluntly stated that the $106,000 mark has revealed a 'bull market trap,' with leveraged funds wildly driving short-term volatility. Circle's IPO surged 168% on its first day, igniting a speculative frenzy. The next key support level is pegged at $100,437; a drop below this could trigger a deeper adjustment.
IT Tech pointed out that the cost for short-term holders is approximately $97,970; if BTC holds this price, there is no need for panic in the short term; history shows that falling below this line significantly increases the risk of correction.
Institutional Fund Flow
Although institutions have not engaged in large-scale selling, ETF net inflows still reached $86.3 million in a single day, with a total of 78,000 BTC entering the market over the week; however, the inflow is lower than the peak in May, and market sentiment remains weak, with funds potentially turning to exit at any time, exacerbating bearish pressure.
Geopolitical Landscape
Trump publicly supported Israel's airstrikes on Iran, threatening an escalation of subsequent actions; the White House urgently clarified that it is not directly involved; Iran seeks a negotiation window, creating a confusing situation that raises many doubts in the market.
Conclusion: The crypto market is brewing a storm, with short-term rebounds hindered, and the sustainability of the bull market remains uncertain. Investors need to be wary of the 'bull market trap,' cautiously position themselves, and hold onto key support in order to welcome the next wave of opportunities!
