Bitcoin’s Liquidity Trap Warning: Pundit Sounds Alarm as BTC Charges Toward New All-Time Highs

Bitcoin's bull run has analysts divided—some see moon, others see traps.

As BTC flirts with record highs, one expert warns of liquidity pitfalls lurking beneath the rally's surface. The market's playing a dangerous game of musical chairs—and when the music stops, not everyone gets a seat.

Meanwhile, institutional investors keep stacking sats like there's no tomorrow. Because in crypto, there might not be—just ask the bagholders from last cycle.

Pro tip: When your Uber driver starts giving BTC price targets, it's probably time to check your stop-losses. The only thing more volatile than Bitcoin? Wall Street's commitment to 'blockchain, not Bitcoin.'

Bitcoin Path To ATH Riddled With Liquidity Traps

Crypto market expert Luca has shared intriguing insights into Bitcoin’s latest price behavior, arguing that the market may be entering a classic liquidity trap phase allegedly orchestrated by market makers. The analyst stated in an X (formerly Twitter) post that Bitcoin’s price action since topping out in late May 2025 has followed a suspicious pattern. He noted that despite experiencing several price rallies, not a single local high has been swept in the past few weeks. 

Luca suggests that this rare price structure could be a deliberate setup, giving the illusion of stability and offering false conviction in bearish positions. The analyst warns that market makers have possibly influenced this market behavior by baiting shorts into entering or holding positions with the assumption that Bitcoin could continue to be capped below resistance. Ideally, this underpins the theory that bear traps are potentially being set as BTC gears up for its next bullish rally.  

Notably, multiple key resistance levels are now stacked tightly between $109,000 and $112,000, as highlighted on the analyst’s 4-hour bitcoin chart. While BTC has been consolidating just below these levels, forming what appears to be a potential base, Luca argues that this price behavior is not a coincidence. Rather than market weakness, he believes the subdued price action reflects a calculated effort by market makers to encourage bearish complacency.

The pundit interprets the deliberate avoidance of liquidity above these resistance lines as a signal that deeper bear traps are possibly being laid. Luca has revealed that this setup could be laying the groundwork for a sudden short squeeze, potentially igniting a sharp MOVE toward a new all-time high for Bitcoin. 

Analyst Says BTC 2024 Breakout Back In Play

Adding historical context to his analysis, Luca compares the current market structure to a prolonged consolidation phase observed throughout 2024. On the second 8-hour chart, a clear trendline of resistance can be seen capping Bitcoin’s upside for most of the previous year. 

The chart shows that price action consistently failed to break above the descending barrier, with multiple attempts being rejected between March and October. Each rejection was marked by unswept highs—similar to the current market setup and suggesting that shorts were systematically being protected. 

This compression finally resolved in November 2024, when Bitcoin erupted through the resistance and launched a parabolic move to new highs. That breakout was fueled by the exact mechanism Luca now believes is in motion. With historical patterns now resurfacing, the analyst maintains that Bitcoin’s ongoing suppression and untouched highs are part of a blueprint that indicates a possible bullish move toward uncharted price territory.