Bitcoin has surged past the $100,000 mark after clearing lower-side liquidity, sparking a fresh wave of speculation among traders. However, the current rally is raising critical questions about market direction.
Two potential scenarios are emerging. First, this could be a classic bull trap—an upward move designed to lure long positions before the price reverses sharply. If this is the case, further downside could be imminent following a temporary pump. The second possibility is that Bitcoin is beginning to recover from the recent geopolitical tensions and market shocks, particularly those stemming from the war.
At present, the likelihood of a bull trap seems stronger than that of a genuine recovery. The market remains unclear and is prone to fake-outs, potentially designed to manipulate retail traders.
In such volatile conditions, it’s advisable to maintain smaller position sizes and exercise caution. Spot buying at current levels could still be a reasonable strategy, but traders should avoid getting caught in deceptive moves. As always, stay alert—any major news, whether positive or negative, could soon clarify the market’s next direction.