BEAR TRAP? BITCOIN PRICE BULLISH DIVERGENCES EMERGE AMID MARKET FEAR

Last updated: June 19, 2025, 20:24 | Written by: Justin Sun

The cryptocurrency market is a rollercoaster, and right now, many are strapped in with white knuckles.While Bitcoin has been trading within a relatively narrow range recently and altcoins are showing signs of life, an undercurrent of fear permeates the market.Is this a legitimate cause for concern, signaling a deeper correction, or are we witnessing a classic bear trap, poised to spring upwards and reward the patient bulls? Bear Trap and Macro Factors. Just weeks ago, Bitcoin experienced a death cross, when the 50-day SMA dipped below the 200-day SMA typically a bearish signal. Yet, what followed was a classic bear trap, where prices unexpectedly reversed direction, catching short-sellers off guard.This question is especially relevant as bullish divergences are starting to appear, suggesting that the bearish sentiment might be overblown. Blockchain Backer Newsletter - Backer's Technical Analysis Toolkit for Crypto -The market’s current state is further complicated by the ever-present Fear and Greed Index, which reflects the prevailing anxieties of investors.Understanding these dynamics is crucial for navigating the choppy waters and making informed decisions.Let's delve into the factors at play, examining the technical indicators, market sentiment, and potential catalysts that could determine Bitcoin's next move. A decisive break by bitcoin below $92,000 could give way to a bear market, technical analysts said, though recent price moves may offer bulls some comfort. But beware if it falls below $92,000. ShareCould we see Bitcoin's price head towards $110k by mid-year?

Understanding Bear Traps in Crypto

A bear trap is a deceptive market signal that fools traders into believing that a downtrend is imminent, leading them to sell their assets.However, instead of the price continuing to fall, it reverses course and heads upwards, leaving those who sold in a precarious position. When bear traders who correctly predicted the looming downward trend get stopped, they look for another entry. The fear and frustration that follow these bull traders and bear traders create selling pressure, leading to even lower prices. As the prices move lower, the bear trap makes the price rise once more, creating the real bull trap.These traps often occur during periods of uncertainty and fear, when traders are more susceptible to panic selling.

Identifying a Bear Trap: Key Indicators

Price Action and Volume: A sharp price decline accompanied by high trading volume can initially appear bearish.However, if the price stabilizes and volume decreases, it might indicate that the selling pressure is waning.
Bullish Divergences: These occur when the price makes lower lows, but technical indicators like the Relative Strength Index (RSI) or Moving Average Convergence Divergence (MACD) make higher lows.This suggests that the downward momentum is weakening, and a reversal could be on the horizon.
Market Sentiment: Extreme fear and pessimism can often be a contrarian indicator.When everyone is bearish, it often signals that the market is oversold and ripe for a bounce.
False Breakdowns: A bear trap often involves the price briefly breaking below a key support level, only to quickly recover and move higher.

Peter Brandt suggested a recent price drop ""might be a bear trap rather than a sign of prolonged bearishness."" This highlights the importance of considering multiple factors before jumping to conclusions.

Bitcoin's Price Action and Bullish Divergences

Despite the prevailing fear, several technical analysts have pointed out potential bullish divergences emerging in Bitcoin's price charts. As Bitcoin is confronted with warning signals of a possible bearish trend, experts think the bull market can endure a major price adjustment. The important levels like the Realised Price of New Whales ($89,300) and Miner Whales ($58,000) will play a key role in deciding Bitcoin's direction going forward.These divergences suggest that the underlying strength of the market is greater than what the current price action indicates. Bitcoin teases a return of the bull market as the monthly and quarterly close save BTC price action from a major trend loss. 5665 Total views 6 Total sharesFor example, the Bitcoin price action and the total market cap shows potential signs of a bear trap for the entire crypto market. Bull Trap vs. Bear Trap. The opposite of a bull trap is a bear trap, which occurs when sellers fail to push the price down below the breakout level. Key Differences between Bull Trap vs. Bear Trap Source: Cointelegraph. Investor reaction: In a bull trap, investors begin buying aggressively, expecting prices to keep rising.However, this is still unconfirmed as of now.

Merlijn Trader noted that Bitcoin's current setup mirrors a 2025 reversal pattern. The analyst revealed that during the bull rally in 2025, 2025, 2025, and 2025, Bitcoin experienced a recurring nine-month bull market, with a bear trap phase occurring around month 5 or 6. Related Reading: Bitcoin Price Prediction: Analyst Charts Roadmap To $117,000, What You Should KnowIn that cycle, Bitcoin experienced a similar Q1 dip followed by Q2 strength, which led to a 500% rally. Bitcoin Price action and the total market cap shows potential signs of a bear trap for the entire crypto marketWhile past performance is not indicative of future results, these historical patterns can provide valuable insights into potential market behavior.

Key Price Levels to Watch

Several key price levels could influence Bitcoin's trajectory:

$92,000: A decisive break below this level could signal a deeper correction, potentially leading to a bear market.
$95,000: Some analysts suggest a potential correction towards this level amid broader market uncertainties.
Realised Price of New Whales ($89,300): This level could act as a support, preventing further downside.
Miner Whales ($58,000): A significant drop below this level would be a major cause for concern.

The Role of Market Sentiment: Fear vs. Bear Trap? Bitcoin Price Bullish Divergences Emerge Amid Market FearGreed

The Fear and Greed Index is a tool used to gauge investor sentiment in the stock market, but it's also relevant to the cryptocurrency market.It ranges from 0 (Extreme Fear) to 100 (Extreme Greed) and combines various data sources to assess whether investors are overly bullish or bearish. Bear Trap? Bitcoin Price Bullish Divergences Emerge Amid Market Fear - Cointelegraph fintech blockchain cryptoHigh fear levels often suggest a potential buying opportunity, while extreme greed can indicate an overbought market that is due for a correction.

Currently, the market sentiment is anchored in fear, suggesting that many investors are hesitant to buy Bitcoin at its current price. Bitcoin Price Bullish Divergences Emerge Amid Market Fear post-template-default,single,single-post,postid- ,single-format-standard,ajax_fade,page_not_loaded,qode_grid_1300,side_area_uncovered_from_content,footer_responsive_adv,qode-content-sidebar-responsive,qode-child-theme-ver-1.0.0,qode-theme-ver-13.3,qode-theme-bridge,wpb-jsThis fear could be driven by factors such as:

Short-Term Volatility: Bitcoin is known for its volatile price swings, which can spook investors and lead to panic selling.
Macroeconomic Uncertainty: Concerns about inflation, interest rates, and the overall economic outlook can weigh on investor sentiment.
Regulatory Concerns: Uncertainty about the future of cryptocurrency regulation can also contribute to fear and uncertainty.

Long-Term Bullish Outlook Amid ETF Milestones

Despite the potential for short-term volatility and the current market fear, Bitcoin's long-term prospects remain robust. Renowned market expert Peter Brandt drew attention to the price drop, but suggests it might be a bear trap rather than a sign of prolonged bearishness. Bitcoin Drop to $73K Possible but Not Certain Notably, Brandt rooted his initial analysis in Bitcoin s historical behavior during similar patterns, with a focus on the potential formation of aThe successful launch of spot Bitcoin ETFs has been a major milestone, amassing over $125 billion in assets in just over a year. Main Points: Bear Trap and Price Adjustments: Bitcoin's recent monthly close above $100K faces potential correction toward the $95K support level amid broader market uncertainties. US Labor Market and FRB Influence: Upcoming US labor data and Federal Reserve policy will be pivotal in shaping Bitcoin's near-term trajectory. Historic Milestone Achieved: January marked the first timeThis institutional adoption signals a growing acceptance of Bitcoin as a legitimate asset class and could drive further price appreciation in the long run.

Experts believe that the bull market can endure a major price adjustment. As fear grips traders, has Bitcoin entered bear market territory, or is a price recovery looming? Bitcoin price today trades at $88,246 with a daily high of $89,508. AdvertisementBitcoin price today trades at $88,246 with a daily high of $89,508.Bitcoin is currently priced at $83,779, with a market capitalization of $1.66 trillion and a 24-hour trading volume of $91.22 billion.

The Impact of Bitcoin ETFs

Increased Liquidity: ETFs provide a more accessible way for institutional investors to gain exposure to Bitcoin, increasing liquidity and reducing volatility.
Broader Adoption: ETFs can attract a wider range of investors, including those who are hesitant to hold Bitcoin directly.
Price Discovery: ETFs can improve price discovery by providing a more transparent and regulated trading environment.

Historical Parallels: Learning from the Past

Looking back at Bitcoin's history, we can see that bear traps have occurred in previous cycles.For example, the 2025 bear trap was triggered by the shutdown of Silk Road, an online black market, and China's ban on Bitcoin, which caused market panic. This bear trap follows the classic bull market structure: Flush-Out Phase Liquidations and fear-based selling. Re-Accumulation Price stabilizes, whales reload. Breakout Incoming The disbelief phase ends, and the next leg up begins. 🔮 Projected Trajectory: 📈 Bitcoin to $110K by mid-yearHowever, Bitcoin eventually recovered and went on to reach new all-time highs.

In 2025, the ICO boom fueled Bitcoin's bull run, pushing its price to $20,000. Is this an opportunity or a trap?Want to trade XRP memes? Sign up here - Don't forget to subscribe for daily updaHowever, a bear trap emerged in the sixth month due to the launch of Bitcoin futures on the CME.This highlights the fact that bear traps can occur even during bullish periods.

The analyst revealed that during the bull rally in 2025, 2025, 2025, and 2025, Bitcoin experienced a recurring nine-month bull market, with a bear trap phase occurring around month 5 or 6. Bitcoin price (BTC) continued its latest sideways trading pattern on Oct. 15 as analysts increasingly warned over likely short-term volatility. Cryptocurrency market daily overview. Source: Coin360. Bitcoin clings to $8K supportThese historical patterns suggest that bear traps are a normal part of Bitcoin's market cycle.

Navigating the Current Market: Strategies for Traders

Given the potential for both a bear trap and further downside, traders should adopt a cautious and strategic approach to the current market.Here are some tips:

Do Your Own Research (DYOR): Don't rely solely on the opinions of others.Conduct your own research and analysis before making any investment decisions.
Manage Your Risk: Use stop-loss orders to limit your potential losses and avoid over-leveraging your positions.
Diversify Your Portfolio: Don't put all your eggs in one basket. CNN s Fear Greed Index is a way to gauge stock market movements and whether stocks are fairly priced. The index uses seven market indicators to help answer the question: What emotion isDiversify your portfolio across different cryptocurrencies and asset classes.
Stay Informed: Keep up-to-date with the latest market news and technical analysis.
Be Patient: Don't panic sell during periods of volatility. Bitcoin has broken key support levels due to worsening liquidity conditions, raising questions about the continuation of the bull market. Learn more on BTC-USD here.Remember that Bitcoin is a long-term investment.

Tools for Technical Analysis

Traders use various technical analysis tools to identify potential bear traps and other market patterns:

Moving Averages: These smooth out price data to identify trends.
Relative Strength Index (RSI): This measures the magnitude of recent price changes to evaluate overbought or oversold conditions.
Moving Average Convergence Divergence (MACD): This identifies potential changes in the direction, strength, momentum, and duration of a trend in a stock’s price.
Fibonacci Retracements: These identify potential support and resistance levels based on Fibonacci ratios.

The Potential for a Bitcoin Drop to $60,000

Analyst Crypto Rover hinted at a potential Bitcoin drop to $60,000 amid a short-term downtrend despite a bullish divergence. Bitcoin traders eye bear trap as BTC price hits 10-day high of $60.4K Bitcoin bulls may be able to trap late sellers below key bull market trendlines as BTC price weekend gains pass 5%.While this scenario is possible, it's important to remember that forecasts are not guarantees. lt;p gt;Technical analysis shows signals of a potential beartrap forming in the crypto market while the overall sentiment shows signs of fear lt;/p gt;Market conditions can change rapidly, and it's crucial to adapt your strategy accordingly.

A drop to $60,000 could be triggered by a number of factors, including:

Worsening Liquidity Conditions: A decrease in liquidity could lead to increased volatility and price swings.
Negative News Events: Unexpected negative news, such as regulatory crackdowns or security breaches, could trigger a sell-off.
Profit-Taking: After a period of strong gains, some investors may choose to take profits, putting downward pressure on prices.

However, even if Bitcoin does drop to $60,000, it doesn't necessarily mean that the bull market is over. Bitcoin may be headed to a bear trap below $95,000 despite staging its first monthly close above $100,000. Bitcoin fell below the $100,000 psychological mark on Feb. 2 for the first timeIt could simply be a temporary correction before the price resumes its upward trajectory.

Bull Trap vs.Bear Trap: Understanding the Difference

It's important to distinguish between a bull trap and a bear trap. For example, the 2025 bear trap was triggered by the shutdown of Silk Road, an online black market, and China s ban on Bitcoin, which caused market panic. In 2025, the ICO boom fueled Bitcoin s bull run, pushing its price to $20,000. However, a bear trap emerged in the sixth month due to the launch of Bitcoin futures on the CMEA bull trap occurs when the price appears to be breaking out to the upside, leading traders to buy, but then the price reverses and heads lower, trapping the bulls.A bear trap, as discussed earlier, occurs when the price appears to be breaking down to the downside, leading traders to sell, but then the price reverses and heads higher, trapping the bears.

The opposite of a bull trap is a bear trap, which occurs when sellers fail to push the price down below the breakout level.Investor reaction: In a bull trap, investors begin buying aggressively, expecting prices to keep rising.

Key Differences between Bull Trap vs. Bear Trap? Bitcoin Price Bullish Divergences Emerge Amid Market Fear trading traders mlmleaders cryptotrading forex forextrading networkers leaders investment mlm CryptoCurrency BitcoinBear Trap

Direction of Initial Move: A bull trap starts with an upward move, while a bear trap starts with a downward move.
Investor Behavior: In a bull trap, investors aggressively buy expecting further gains.In a bear trap, investors aggressively sell expecting further losses.
Outcome: In a bull trap, the price eventually reverses and heads lower, trapping the bulls.In a bear trap, the price eventually reverses and heads higher, trapping the bears.

US Labor Market, FRB Influence and Correction toward the $95K

Upcoming US labor data and Federal Reserve policy will be pivotal in shaping Bitcoin's near-term trajectory. Long-Term Outlook Remains Bullish Amid ETF Milestones. Despite the potential short-term volatility suggested by the bear trap, Bitcoin's long-term prospects appear robust. Following the successful launch of spot Bitcoin ETFs, which have amassed over $125 billion in just over a year, the market sentiment remains optimistic.Recent monthly close above $100K faces potential correction toward the $95K support level amid broader market uncertainties.January marked the first time Bitcoin may be headed to a bear trap below $95,000 despite staging its first monthly close above $100,000.Bitcoin fell below the $100,000 psychological mark on Feb. 2 for the first time.

The aggressive sell-off has pushed the price of the top token down by as much as 23.4% from January's record price of $109,350. The aggressive sell-off has pushed the price of the top token down by as much as 23.4% from January's record price of $109,350. By Wednesday afternoon, bitcoin had fallen to an intraday low ofBy Wednesday afternoon, bitcoin had fallen to an intraday low of.

Conclusion: Is it a Bear Trap or a Deeper Correction?

The current Bitcoin market presents a complex picture, with conflicting signals and a prevailing sense of fear.While bullish divergences suggest the possibility of a bear trap, the potential for further downside cannot be ruled out.The key to navigating this uncertainty lies in careful analysis, risk management, and a long-term perspective.

Remember to:

Stay informed about market developments and technical indicators.
Manage your risk by using stop-loss orders and diversifying your portfolio.
Focus on the long-term fundamentals of Bitcoin and the cryptocurrency market.

Whether it's a bear trap or a deeper correction, understanding the dynamics at play will empower you to make informed decisions and navigate the market with greater confidence.As Bitcoin teases a return of the bull market as the monthly and quarterly close save BTC price action from a major trend loss, it is important to watch the price action carefully.Ultimately, the market will reveal its true intentions, and those who are prepared will be best positioned to capitalize on the opportunities that arise. BTC Price Projections. Although the market sentiment is anchored in fear, some market analysts have predictive bullish outcomes for Bitcoin. Merlijn Trader pointed out that Bitcoin s current setup mirrors 2025 s reversal pattern. In that cycle, Bitcoin experienced a similar Q1 dip followed by Q2 strength, which led to a 500% rally.Consider consulting with a financial advisor before making any investment decisions.