Bitcoin's $116,000 Surge Deemed a "Liquidity Trap" by Analyst
Despite Bitcoin's recent rally to an impressive $116,000 earlier this week, crypto analyst Adez warns traders that the surge is likely a deceptive "trap" rather than a genuine breakout. According to Adez, market indicators suggest a significant downturn is imminent, urging investors to exercise caution before the true bullish trend can establish itself.
The Missing Pieces: Why the Rally Isn't What It Seems
Adez meticulously dissected the Bitcoin price action, highlighting a pump from roughly $111,000 to $115,500 that many mistook for a solid breakout. However, the analyst pointed out critical discrepancies in market behavior. While BTC momentarily swept the Value Area High at $114,600, the Cumulative Volume Delta (CVD) showed minimal movement. Furthermore, open interest remained flat, and the funding rate hovered at a "dead neutral" 0.01%. This combination indicates a distinct lack of institutional support, new capital inflow, or widespread retail Fear Of Missing Out (FOMO), leading Adez to conclude the price action was merely a "liquidity grab" – designed to liquidate eager traders.
Impending Reversal and Strategic Entry Points
Forecasting a "sharp reversal," Adez advised observers to monitor the next few H4 candles for signs of rejection below $114,600, followed by a lower low and a dropping CVD. For a confirmed "break of structure," Bitcoin would need to fall below key levels: the H1 at $114,839 and subsequently the H4 at $113,560. Should these levels break, Adez predicts an 85% probability that BTC will head towards the "real support" zone between $104,000 and $106,000 within the next seven to ten days. He noted that Bitcoin has already breached these immediate resistance levels, indicating a high risk of descending to these anticipated support ranges. This strategic outlook emphasizes that while November and the fourth quarter are historically bullish, genuine rallies typically originate from deeper "value zones" where institutions accumulate, contrasting with retail traders who often chase upward price movements only to get stopped out before the real buying opportunities emerge.
