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An experienced crypto analyst warned of the dangers associated with cryptocurrency. recent Bitcoin (BTC) price action It is possible that the current market cycle will repeat past trends. The leading cryptocurrency aims for new all-time highsThe pundit suggests market makers might be creating bear traps to create a breakout.
Bitcoin’s Path to ATH is Riddled with Liquidity traps
Luca, a crypto market expert has revealed some fascinating insights about Bitcoin’s price behaviour. He believes that it may be approaching a traditional market cycle. liquidity trap phase Market makers allegedly orchestrated the alleged manipulation. Analyst stated In an X post (formerly Twitter), Bitcoin’s recent price movement was discussed. topping out in late May 2025 A suspicious pattern has emerged. In spite of several price increases, he noted that not one local high had been reached in the last few weeks.
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Luca says that this unusual price structure may be a set up, to give the appearance of stability. conviction in bearish positions. Analyst warns market makers It is possible that shorts have influenced the market by encouraging them to hold or enter positions, based on an assumption that Bitcoin would continue to remain below resistance. Idealistically, this supports the theory that possible bear traps may be being set up as BTC prepares for its next rally.
As shown on the 4-hour Bitcoin graph, there are multiple resistance levels that have been stacked between $109,000 to $112,000 in recent weeks. Although BTC has been consolidating Luca argues, that just beneath these levels, forming a possible base, this price behaviour is not a coincident. Instead of market weaknessHe thinks the market makers are deliberately trying to create a bearish environment by lowering prices.
According to the analyst, the avoidance of liquid above these lines is an indicator that there are deeper levels. bear traps Possibly, the groundwork is being laid. Luca said that this set-up could be laying a foundation for a sudden short squeezeThis could spark a sudden move towards a new Bitcoin high.
BTC 2024 Breakout is Back, According to Analysts
Luca adds historical context to the analysis by comparing current market structures to a prolonged consolidation phase The trend will continue to be observed through 2024. The second chart shows a trendline that has been limiting Bitcoin’s gains for the majority of last year.
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Chart shows multiple rejections between March and November. Each rejection was marked by unswept highs—similar to the current market setup and suggesting that shorts were systematically being protected.
Bitcoin finally broke out of this compression in November, 2024. It exploded through resistance and sped up to reach new heights. The exact mechanism Luca thinks is now in action was the catalyst for that breakout. You can get started with historical patterns Bitcoin analyst claims that Bitcoin has now returned to prominence. ongoing suppression Uncharted highs and unbroken lows form a pattern that could indicate a bullish movement toward new price territory.
Image from Pixabay. Chart by Tradingview.com
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Source: www.newsbtc.com
