Bitcoin Price Bull Trap at $124K, Consolidates $116K–$124K
Bitcoin price surged to a new all-time high of $124.4K before reversing sharply, creating a classic bull trap. Heavy selling pressure targeted late long entries, pushing the price back toward the ascending channel’s lower boundary near $118K. Traders now focus on a consolidation range between $116K and $124K, awaiting a decisive breakout. On the 4-hour chart, a liquidity hunt above recent highs triggered buy orders and stop losses before a rapid drop. On-chain data show Binance’s 7-day mean inflows spiking to multi-month highs, signaling potential sell-side activity. If spot demand fails to absorb these inflows, short-term volatility could increase. A rebound from $118K may reignite bullish momentum, while a breakdown risks deeper corrections.
Neutral
The formation of a bull trap at the $124K record high, followed by a rapid reversal, suggests a phase of range-bound trading rather than a clear trend continuation or reversal. Historically, similar bull traps occurred in late 2017 and early 2021, leading to short-term pullbacks and consolidation before the next major move. The spike in Binance inflows further points to potential selling pressure that could fuel volatility. In the short term, traders should expect choppy price action within the $116K–$124K band as market participants hunt for liquidity. In the long term, holding key support around $118K will be critical to maintaining the broader bullish thesis.