Bitcoin has ended its period of sideways trading, breaking through the $107K mark, raising speculation about whether this is a genuine breakout or a liquidity trap.
Bitcoin’s Spotlight Return
The cryptocurrency market is currently pricing in new all-time highs for Bitcoin. After a week of sideways movement, Bitcoin finally pushed past the $107K mark, reclaiming momentum. This move was not random; it may have been a structurally engineered setup, leading to questions about future market developments.
Whales’ Tactical Moves
The past 48 hours have seen a volatile run for Bitcoin holders. High-leverage entities were tactically moving into long positions, anticipating a breakout. When Bitcoin hit $107K, Open Interest reached a new all-time high of $70 billion. Despite a retrace to $103K, some whales are still doubling down on their positions.
Conclusions on Market Situation
The current market outlook is critical, with sentiment split between a breakout and a bull trap. Either a significant breakout will occur, or there will be another aggressive correction. While Bitcoin’s Open Interest has surged by 2.93%, funding rates are heavily skewed towards long positions, indicating increased whale interest. However, the $106K–$107K zone remains a tough resistance level.
As approximately 30,000 BTC exited short-term holders' wallets over the past few days, the market may be vulnerable to new liquidity sweeps. A clean breakout to new all-time highs may be premature.
