Bitcoin$BTC
has finally pumped after clearing the lower side liquidity and is now trading above the $100,000 mark. This is a big move, no doubt, but we need to look deeper to understand what’s really going on here.
At the moment, there are two possible scenarios playing out:
1. The Bull Trap:
This pump could very well be a trap — a classic move to lure in long positions before the market dumps again. We've seen this kind of fake-out before, especially when liquidity has just been taken out. Given how the market’s been behaving lately, this seems like the more likely case.
2. Recovery from External Shocks:
On the flip side, it could be that the market is beginning to recover from the negative impacts of recent global conflicts and economic uncertainty. Although that sounds promising, the signs aren't strong enough yet to confirm a full recovery. $ETH
Right now, the market is in a very tricky zone. It’s unclear, choppy, and prone to manipulation. You can expect some fake moves in both directions — a classic setup to trap traders and liquidate both sides.
My take?
Play it safe. Don’t over-leverage. Use smaller position sizes and stay cautious. As I’ve said earlier, this is actually a good time to consider some buying in spot rather than diving into aggressive trades. Accumulate slowly. Don't fall for the traps!
Stay sharp out there.