Bitcoin Bears Beware – This price level could be a big trap

* The future of Bitcoin is promising but also carries risks.

• Is BTC signaling another 'bull trap' or is it the beginning of a price squeeze?

For Bitcoin [BTC] to maintain its upward trend, it needs to break through the resistance levels above. If not, as TinTucBitcoin has pointed out, sell orders are waiting to take advantage of any signs of weakness.

However, it will not be easy to regain the high prices.

History shows that the excitement when breaking out often lures weak hands to exit early, allowing bears to establish a liquidity sweep down.

Currently, with BTC approaching the late January high around 106,249 USD, this situation is becoming frighteningly familiar. Could this be the beginning of a well-orchestrated bullish trap?

Pay attention to the STH group of Bitcoin

Since Bitcoin surpassed the 93K level, the STH MVRV (Market Value to Realized Value) ratio has been consistently increasing, with short-term Holders (> 155 days) experiencing a profit of about +10%.

In other words, these short-term players are sitting on unrealized profits, with entry points lower than the current market price of BTC.

Source: Glassnode

Looking back at the previous cycle, the STH MVRV ratio peaked when BTC reached 98,154 USD on November 21.

However, the price increase did not stop there. Bitcoin continued to reach 106K in the following month, absorbing pressure.

But that is when everything goes down. The buying support cannot be maintained, as short-term holders flood the market with liquidity, pushing the NUPL (Net Unrealized Profit/Loss) into the deep red zone.

This liquidity dump has triggered a market correction, with BTC ultimately closing at $76,270 at the beginning of April.

Is the bear ready to roar again?

Coinglass data is sending a warning signal: The Open Interest (OI) in Bitcoin derivative products has increased back to 66 billion USD, equivalent to the level when BTC was near 104K in the fourth quarter of last year.

This is a high-risk game.

Source: Coinglass

With price actions testing historical peaks, short-term holders are making good profits, and Open Interest is heating up, the volatility factors are all set.

The coming days could determine whether Bitcoin's rally is truly sustainable or just a cleverly disguised price trap.

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