Bitcoin News

Story: Bitcoin Near $118K Triggers Bull Trap Fears as Traders Load Up on Longs

By James Thorp

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Bitcoin's impressive surge to an all-time high earlier this month has cooled off, with the flagship cryptocurrency now trading around $118,000.

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Market participants appear optimistic, but the data tells a more complicated story. According to insights from on-chain analytics firm CryptoQuant, key indicators reveal a…

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Sentiment Tilts Bullish as Traders Pile Into Longs

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One of the more striking developments in recent days is a surge in long positions among traders on Binance.

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During Bitcoin’s previous consolidation between $100,000 and $110,000, traders were more heavily positioned on the short side.

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“Now that sentiment is skewed heavily toward longs, the same principle could apply in reverse,” BorisVest noted.

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This dynamic, where excessive bullishness creates vulnerability, is not new in crypto markets.

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Investor Behavior Tells a Different Story

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While exchange sentiment paints a picture of growing optimism, other data suggests that long-term investors are taking a more measured approach.

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In previous cycles, such as in 2017 and 2021, sharp increases in Bitcoin’s price were often accompanied by large inflows to exchanges, as investors looked to take profits.

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“The market now shows a consolidating trend, with reduced selling pressure,” Arab Chain wrote.

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Still, he issued a note of caution: should exchange inflows suddenly spike, it could serve as a warning sign of growing selling interest, potentially triggering renewed volatility.

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Consolidation or Trap? Key Levels to Watch

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The combination of elevated long positions and low selling activity creates a complex setup.

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Bitcoin's current range between $116,000 and $120,000 has become a battleground, with each failed attempt to move higher adding to trader frustration.

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