Bitcoin Creates a Bear Trap Like in 2024 Before 'Major Short Selling': Trader

Bitcoin will have to go through the "Next Major Short Selling" in the coming weeks as market makers set the final price trap for a fall. A new forecast from famous trader Luca this week indicates that BTC will repeat the breakout trend by the end of 2024. Bitcoin Market Makers Are Making Short Sellers "Overconfident" The Bitcoin order book may hold the key to what will happen with BTC/USD in the coming weeks — and bullish speculators will benefit. When considering the recent price performance, Luca believes that the lack of a new high is not actually a bearish signal. "Let's look at the price movement of $BTC over the past few weeks, since it peaked in mid-August. No peak has been broken," he wrote. "I think the reason is that short sellers are being protected in the short term."

This theory explains that market makers artificially keep the market fluctuating to convince short sellers that their bets will be profitable. The post continues, referring to the sideways price movement over seven months of last year: "We have seen something similar in 2024, during the HUGE consolidation phase when the highs were never reached until we actually had the breakout in November."

The longer this scenario drags on, the more the short sellers become "complacent" - creating ideal conditions for a short squeeze. Luca concludes: "I believe this is what will lead to the next major short-selling in the coming weeks, and although it may seem counterintuitive, I think that the currently protected short-selling and the high levels not being wiped out is a very positive sign for the future." The BTC price breakout "Has Been Fully Confirmed" Many market participants believe that Bitcoin will continue to create new lows. $100,000 is still a popular downside target, with arguments focusing on phenomena such as bearish divergence on leading indicators. BTC/USD has returned to the level of 113,000 dollars on Friday, with data from CoinGlass showing that approximately 100 million dollars worth of cryptocurrency was liquidated in the past 24 hours.

This is enough for some people to call it the end of the correction from the all-time high that started in mid-August. "Technically, Bitcoin has fully confirmed its breakout," famous trader and analyst Rekt Capital shared with X followers along with a chart update. "The daily closure and/or rechecking the ~$113,000 (red) area will ensure the trend continues to rise."