Bitcoin Breaks $100K: Bull Trap or Recovery?
Bitcoin ($BTC) $BITCOIN has made a strong move, clearing the lower-side liquidity and pushing past the much-anticipated $100,000 level. While this move has excited bulls across the market, it's crucial to approach the current price action with caution.
At this point, two possible scenarios are playing out:
1. The Bull Trap Scenario
This pump could be a classic bull trap — designed to lure long positions before a potential reversal. With liquidity taken on the downside, the market might now be setting the stage to wipe out overleveraged longs. This kind of setup is often used by market makers to induce volatility and shake out both sides before committing to a real move.
2. Genuine Recovery
On the other hand, this could mark the early stages of a real recovery, possibly as the market starts pricing out the recent geopolitical instability (especially the war impacts) and shifting back into risk-on mode. However, while this is a valid scenario, the probability seems lower in the current context.
Uncertainty and Traps Ahead
Right now, the market direction remains unclear. In such phases, fake breakouts and erratic moves are common, designed specifically to trap impatient traders. We're likely to see more of these liquidity hunts in both directions until a clearer fundamental or technical trigger emerges — whether it’s a major macroeconomic headline, regulatory update, or unexpected news event.$ETH
ETH
2,486.23
+1.85%
Trading Strategy: Stay Light, Stay Smart
This is not the time for aggressive leverage. Until direction is confirmed:
Use smaller position sizes
Stay nimble
Consider building spot positions slowly, as previously suggested.
