Bitcoin has broken past the $100,000 mark after clearing lower-side liquidity zones—an impressive move that’s caught the attention of traders across the globe. However, this recent pump raises a critical question: is this a genuine breakout or a carefully orchestrated bull trap?
There are currently two possible scenarios unfolding:
1. Bull Trap in Action:
The more likely scenario is that this upward movement is designed to lure long positions before a potential reversal. After sweeping liquidity, such price actions often create false hope among traders, only to reverse sharply and liquidate over-leveraged positions.
2. Recovery Amid Global Uncertainty:
On the other hand, this pump could also be interpreted as the market recovering from the recent instability caused by global tensions and war. However, this explanation currently holds less weight compared to the possibility of market manipulation.
At this stage, Bitcoin’s direction remains uncertain. The market is likely to produce misleading moves in both directions to confuse and trap retail traders. Until a major catalyst—either a strong positive or negative news event—shapes a clearer trend, caution is warranted.
Trading Advice in Uncertain Times:
In such volatile conditions, it is crucial to minimize risk. Use smaller position sizes if trading actively, and avoid falling into emotional traps. As previously suggested, these uncertain zones often provide good opportunities for strategic spot buying—especially for long-term holders.
Remember, patience and discipline are your best allies in a market full of traps. Stay sharp and don’t chase every move.
