- Bitcoin’s price pattern suggests a short squeeze that could drive it past $140K as traders react to market pressure.
- A bear trap has formed, which often leads to aggressive upside moves as short positions get wiped out.
- If momentum continues, Bitcoin could enter a parabolic rise with potential targets exceeding $150K in the coming months.
Bitcoin’s recent price action has formed what appears to be a textbook bear trap, setting the stage for a massive liquidation of short positions. The chart highlights key phases such as the shakeout, momentum building, and first sentiment extreme, followed by a consolidation phase that traders recognize as a bear trap. Historically, such formations lead to a renewed bullish breakout, with the next wave potentially sending BTC to new highs . Given the positioning of this structure, the upcoming move could push BTC well beyond $140K.
The Shakeout and Momentum Phase
The shakeout phase, observed between early 2024 and mid-year, saw Bitcoin trading in a tight consolidation zone, shaking weak hands out of the market. A strong upward breakout followed as liquidity built up, marking the momentum-building phase. During this stage, BTC surged significantly, forming higher highs and maintaining an aggressive bullish trend. This trend climaxed in the first sentiment extreme, where traders became highly optimistic, fueling FOMO-driven buying pressure.
The chart indicates a bear trap, where the price consolidates in a tight range, luring in short sellers expecting a breakdown. However, such patterns often result in the opposite—an aggressive move to the upside that liquidates shorts and forces traders to buy back at higher levels. The positioning suggests a short squeeze is on the horizon, which could propel BTC past $140K as liquidity shifts in favor of bulls.
The Road to Renewed Optimism
The renewed optimism phase, as outlined in the secondary chart, suggests that Bitcoin’s price could enter a parabolic phase. Once bears are liquidated, upward momentum accelerates as sidelined buyers rush in. The breakout from this bear trap could begin Bitcoin’s next major rally, aligning with historical cycles where similar patterns led to explosive growth. Given current market conditions, BTC could be eyeing price levels beyond $150K in the coming months.
With this perfect setup forming, Bitcoin appears poised for another significant leg up, leaving bears trapped in what could be the biggest short squeeze in recent history.
