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Bull trap before the collapse? Bitcoin on thin ice
Bitcoin just showed one of the cleanest liquidity sweeps in months. After capturing liquidity above 116K and then sharply rejecting, the market seems ready to punish late bulls who chased the breakout.
What I’m observing:
The logic: This setup is a classic bull trap after a strong rally. The sudden spike to new highs attracted breakout buyers while institutions were unloading. Now, we might see a distribution across multiple phases as the market corrects toward deeper demand zones.
What could invalidate this? If BTC recovers above 120,000 with strong volume and closes a 4-hour candle above it — the short idea is invalidated.
My plan: Short bias below 116K, scaling in on retracements, targeting mid-range and lower demand zones step by step.
What do you think? Is this a bull trap before a deeper correction, or will Bitcoin surprise everyone with another breakout?