Bitcoin ($BTC) $BTC
has just cleared lower-side liquidity and is now trading above the $100,000 mark. While this might seem like a strong bullish signal, it’s important to approach this move with caution.
At this stage, two possibilities stand out:
Bull Trap Scenario: This could very well be a classic bull trap. A sharp upward move like this may be designed to lure long positions before pulling back sharply. Given the market’s recent behavior, this seems like the more likely outcome.
Genuine Recovery: On the other hand, we might be witnessing the early signs of a recovery—possibly a reaction to recent global instability, including the economic impacts of war. However, the probability of this being a real bullish breakout remains lower compared to the first case.
Currently, the market direction is unclear. We’re likely to see several fakeouts and deceptive moves aimed at trapping both bulls and bears. In such times, it’s crucial to remain cautious. Avoid overexposure, and use small position sizes to manage risk effectively.
As I’ve mentioned before, spot buying during dips can be a strategic move right now—but don’t get caught chasing pumps. Let the market reveal its true direction before making any aggressive plays.
Stay alert. Stay smart. Don’t fall for the traps.
