Bitcoin Soars to $116K - But Is This a Massive Bull Trap?

Bitcoin rockets past $116,000 in stunning rally

Warning signs flash red as analysts detect classic bull trap patterns

The crypto market holds its breath - will this surge hold or collapse?

Traders face the ultimate dilemma: ride the wave or bail before the crash

Because in crypto, what goes up must come down - usually faster than it went up

Bitcoin price key technical points:

• Major Resistance Zone: $116,000 aligns with the 0.618 Fibonacci, VAH, and high-timeframe resistance.
• Price Reaction: Multiple rejections have occurred on lower timeframes, hinting at exhaustion.
• Critical Support: The Point of Control (POC) and $106K support remain crucial to defend.

From a technical standpoint, Bitcoin’s approach to $116,000 has produced a series of lower-timeframe rejections, suggesting that bullish momentum is beginning to stall. This region acts as a cluster of technical resistance, with sellers actively defending the upper boundary of the current trading channel.

Price has since corrected slightly, falling back below the value area high and approaching the Point of Control (POC), a key volume-based level that often acts as the mid-range equilibrium point. This is a crucial level for bulls to hold. If bitcoin fails to sustain above the POC, it would increase the probability of a confirmed bull trap, leading to a deeper correction toward the $106K high-timeframe support zone.

The $106,000 region also aligns with the value area low (VAL), marking a strong structural demand zone. Losing the POC WOULD likely accelerate selling pressure into this support, confirming the bull trap setup that has been building at $116,000.

The broader market structure remains cautiously bullish but increasingly vulnerable. As long as Bitcoin remains below the $116,000 resistance cluster, momentum may continue to fade. The risk of a bull trap becomes more pronounced if volume declines while price attempts to retest this level unsuccessfully.

Alternatively, a decisive reclaim of $116K on strong volume would invalidate the bear thesis and open the door to renewed bullish continuation toward $124K. However, without confirmation, traders should approach this level with caution, the technical evidence currently favors a near-term correction.

What to expect in the coming price action

If Bitcoin loses the Point of Control, price could rotate quickly toward the $106,000 support, forming a larger range-bound structure between $106,000 and $116,000. This would likely result in a prolonged consolidation phase as traders reassess directional bias.