Crypto Analyst Warns of Liquidity Traps as Bitcoin Targets New ATHs

A seasoned crypto analyst warns that Bitcoin's recent price patterns may be setting the stage for significant liquidity traps, reminiscent of past cycles. As Bitcoin endeavors to reach new all-time highs, market makers could be intentionally creating conditions for bear traps before initiating a major upward breakout. The analyst highlights that since the late May 2025 top, Bitcoin's price action has shown rallies without sweeping local highs, which could be a deliberate ploy to mislead traders into bearish positions. Multiple resistance levels clustered between $109,000 and $112,000 are being consolidated just below, possibly to encourage bearish complacency. This pattern might be a setup for a swift short squeeze, propelling Bitcoin to new heights. Historical market behavior from 2024 reveals similar consolidation and resistance testing, culminating in a decisive breakout, reinforcing the likelihood of a bullish move ahead.