The leading cryptocurrency is poised for a “serious short squeeze” as market makers prepare a large-scale bear trap, according to a trader known as Luca. He stated that unused lows are forming on the Bitcoin chart, with large liquidity clusters accumulating at lower levels.
The expert highlighted the change in the digital gold’s price over the past couple of weeks since reaching an all-time high (ATH) in mid-August — since then, the asset has not surpassed any local peaks.
“I think the reason is that short positions are becoming more protected in the short term. We have seen something similar back in 2024, throughout the entire phase of major consolidation, when highs were never updated until a breakout occurred in November,” Luca explained.
He linked the current situation to market makers wanting to “calm the bears”:
“When you are confident there is no ATH, it’s a very easy short position.”
In the near term, the trader expects a correction according to this scenario. He added that the protection of short positions now and the maintenance of highs is a “very positive signal” for further growth.
At the time of writing, Bitcoin is trading at $112,300, according to CoinGecko. Over the past week, the asset has risen by 2.2%.
Earlier, João Vedson, the founder of the analytical platform Alphractal, suggested the onset of a bear market in October, with the first cryptocurrency dropping to $50,000.