Following Bitcoin’s recent record high around $124,400 in August 2025, market analysts warn of a classic bull trap emerging. After briefly surpassing its previous all-time highs, Bitcoin sharply reversed, sparking concerns that the recent surge may have been a false breakout designed to lure in late buyers before a potential downtrend or extended consolidation.
Key points from the analysis:
The price quickly dropped back below the high, retreating toward a critical support zone near $116,000 to $118,000.
The sharp sell-off came with strong volume and long liquidations, indicating significant selling pressure rather than a healthy pullback.
On the 4-hour chart, BTC displayed a liquidity-driven reversal pattern with momentum divergence—prices reached new highs but buying strength weakened, a classic warning signal.
Binance and other exchanges have seen increased BTC inflows, suggesting holders may be preparing to sell, adding to short-term bearish pressure.
The possibility remains that Bitcoin will consolidate between roughly $116,000 and $124,000 before the next major move.
Technical indicators such as MACD and moving averages show mixed signals; while some bullish momentum remains, caution is advised due to volatility.
Analysts stress this is a critical phase for BTC; a break below $116,000 could imply more downside, while a strong rebound could rally toward $135,000 and beyond.
Market fundamentals like institutional accumulation, ETF inflows, and regulatory clarity still support longer-term bullishness despite short-term risks.
In summary, Bitcoin’s recent price action is a cautionary reminder that rallies beyond all-time highs can sometimes be deceptive bull traps. Traders are advised to manage risk carefully and watch key support/resistance zones for confirmation of the next sustained trend direction.
