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Bitcoin Breaks $100K: Bull Trap or Recovery Rally?
Bitcoin ($BTC) has stunned the market by pumping past the $100,000 mark after sweeping the lower-side liquidity. While this move has excited many investors, it's essential to analyze whether this is the beginning of a genuine bullish trend or just another strategic market trap.
Two Possible Scenarios
At this critical juncture, the market presents two possible scenarios:
Bull Trap Setup
The most likely scenario is that this recent surge is a classic bull trap. After clearing out liquidity from lower levels, the market might be luring traders into long positions, only to reverse and head lower. Such traps are common in volatile environments and are often used to exploit overly eager participants.
Recovery from Geopolitical Impact
Alternatively, Bitcoin may be showing early signs of recovery from recent bearish pressure brought on by global conflict and macroeconomic instability. A sustained move above $100K could signal that confidence is returning to the crypto space, especially if positive news follows.
Current Market Sentiment: Unclear
Right now, the market direction remains uncertain. We can expect several fakeouts—sharp but unsustainable moves designed to trap both bulls and bears. In such times, emotional trading and overleveraging can lead to devastating losses.
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