Bull Trap Warning as Bitcoin Whales Accumulate, $103K Dip
Bitcoin price has climbed above $110,000, driven by whale accumulation and retail selling. On-chain data shows large investors absorbed over 52,000 BTC since July, limiting supply and supporting market momentum. Price now trades near $111,000 with key support at $110,000 and immediate resistance at $112,000.
Crypto analyst Xanrox warns this rebound may be a bull trap to shake out weak hands. He uses Elliott Wave theory to label the move as completed Wave 1 and a current Wave 2 ABC correction. Xanrox expects a 61.8% Fibonacci correction (retracement) to $102,909 and highlights an unfilled fair value gap between $102,000 and $104,000.
Traders should monitor exchange flows, stop-loss liquidity and Fibonacci levels for precise entry points. A sustained hold above $110,000 could fuel further upside, while a drop below may target the $103,000 zone. Despite near-term bearish pressure, long-term trend remains bullish with a potential Wave 3 rally driving new all-time highs.
Bearish
This news signals near-term bearish pressure on Bitcoin, as analysts warn of a bull trap and target a 61.8% Fibonacci correction to around $103,000. The anticipated Wave 2 ABC retracement and fair value gap fill could drive selling pressure in the short term. However, strong whale accumulation and off-exchange holdings limit available supply, maintaining medium and long-term bullish momentum. Traders may see a dip to key Fibonacci levels before a potential Wave 3 rally pushes Bitcoin to new highs.