- Bitcoin’s recent pullback may be setting up a classic bear trap, similar to the late-2024 breakout.
- Market makers appear to be protecting shorts, creating complacency among bears before a potential short squeeze event.
- BTC has bounced back to $113,000, liquidating nearly $100M in shorts within 24 hours.
- Analysts suggest the breakout is already technically confirmed, despite bearish sentiment and downside calls toward $100K.
Bitcoin Sets the Stage for a 2024-Style Bear Trap
Bitcoin’s correction from its all-time highs has sparked fresh debate in the crypto market, with many traders calling for deeper declines. But according to new forecasts, the price weakness could be part of a larger setup — one that traps bears before unleashing a major short squeeze.
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Renowned trader Luca suggests Bitcoin is mirroring the late 2024 breakout pattern, when the market endured months of sideways action before exploding higher in November. He argues that current price behavior shows market makers deliberately keeping Bitcoin rangebound to lure short sellers into a false sense of security.
Market Makers Keep Bears “Complacent”
Looking at the recent trend, Luca highlights that since Bitcoin peaked in mid-August, no fresh highs have been tapped. While this might look bearish to many, he believes it signals something more strategic: shorts being protected until market makers trigger the next squeeze.
“I believe this is what will lead to the next major short squeeze in the coming weeks… shorts getting protected right now and the highs not getting swept is a very positive indication moving forward,” Luca wrote on X.
This echoes the 2024 playbook, where months of consolidation convinced bears they were in control, only for Bitcoin to surge dramatically once the breakout occurred.
BTC Price Breakout “Fully Confirmed”
Despite widespread calls for Bitcoin to revisit $100,000, the market has already shown signs of strength. On Friday, BTC rebounded to $113,000, triggering nearly $100 million in short liquidations within 24 hours, according to CoinGlass.
Trader and analyst Rekt Capital went as far as to declare the breakout “fully confirmed”, reinforcing the view that the correction phase may already be over.
With market sentiment leaning bearish, history suggests the conditions are aligning for another surprise rally, leaving short sellers on the losing end.
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