Bitcoin’s $90K Breakout: Bull Trap or Springboard to $120K?

Did Bitcoin Just Fake Out the Entire Market?

Bitcoin has reclaimed the $90,000 level, igniting fresh bullish sentiment—but is this the beginning of the next leg up or a cleverly disguised bull trap? Let’s break down the technicals and what it means for the broader crypto landscape, including Ethereum (ETH), Solana (SOL), and Avalanche (AVAX).

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Weekly Chart Breakdown: $90K – A Psychological & Technical Pivot

Bitcoin closed the week above $90K for the first time in months, posting a 12% gain. However, the volume tells a different story—18% below April’s average. Historical parallels from 2021 and 2023 show that similar breakout attempts resulted in 22–30% pullbacks within two weeks.

Key BTC Levels to Watch:

Support: $88K (former resistance flipped support)

Resistance: $94.5K (2025 YTD high)

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The Liquidation Catalyst

This rally wiped out $1.2B in short positions, triggering a cascade of forced buying. But open interest (OI) has surged to $34B, a potential warning sign. When OI spikes without volume confirmation, it often hints at overextended leverage—setting the stage for a swift correction.

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What’s Next: Bull vs Bear Scenarios

Bullish Outlook:

A confirmed daily close above $92K could activate momentum algos and attract institutional flows. Bitcoin ETF inflows are up 8% this week. ETH and SOL also show strength, gaining 6.3% and 9.1% respectively, hinting at sector-wide rotation.

Bearish Risk:

Failure to hold $88K could confirm a lower high on the weekly chart, paving the way for a correction back to $80K. AVAX and ADA have started to stall at resistance, indicating early weakness in the altcoin space.

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Pro Tip for Traders:

Watch for a breakout with volume >$25B/day before entering aggressive longs. Until then, scalpers can trade the $88K–$92K range with tight risk management.

#BTC #ETH #SOL #AVAX #CryptoAnalysis #binancetrading