By(MR_UMAIR
Bitcoin has made a dramatic move, surging past the $100,000 mark after sweeping out lower-side liquidity. While this rally has reignited excitement in the crypto market, traders should remain cautious — as this move may not be what it seems.
At this point, two scenarios are unfolding:
The Bull Trap Scenario:
This surge could be a classic bull trap, luring in long positions only to reverse sharply. It’s a well-known tactic in volatile markets where a small pump is followed by a deeper correction, punishing overleveraged traders.The Recovery Scenario:
Alternatively, Bitcoin might be stabilizing after weeks of geopolitical tension and war-related uncertainty. If this is the case, it could signal the early stages of a longer-term recovery.
Despite these possibilities, the first scenario appears more likely at the moment. Market structure remains unclear, and we are likely to see fakeouts designed to confuse and trap both bulls and bears. A decisive move — either upward or downward — will likely come in response to a major fundamental trigger such as a significant geopolitical update or macroeconomic event.
Strategy in Uncertain Markets:
Until clarity emerges, it’s wise to reduce risk. Use smaller position sizes, avoid chasing pumps, and consider adding to spot holdings gradually. As previously noted, this is still a good time to build long-term positions — but only in spot, not with aggressive leverage.
Patience and caution are your best tools in a market designed to mislead.