Santiment Warns: Is Bitcoin $70,000 a Bull Trap?

Yeliz Akmaca — Thu, 26 Feb 2026 11:30:29 +0000

Santiment data shows that as Bitcoin approached $70,000, billions of dollars re-entered the market, affecting short positions and raising questions about a potential bull trap. Bitcoin approached the $70,000 mark as billions of dollars re-entered circulation. This surge squeezed short positions, prompting investors to ask: “Is this a bull trap or a relief rally?” At the time of writing, Bitcoin was trading around $67,800.

The cryptocurrency market gained 3.7% in the last 24 hours, with total market capitalization increasing by roughly $120 billion to reach $2.43 trillion. Indeed, this movement reflects a rapid improvement in investor sentiment. Santiment noted that while BTC was preparing to retest the $60,000 level, it was poised to climb above $70,000 in a short period.

Santiment Charts Reveal Investor Behavio

Latest chart data illustrates an interesting correlation in investor sentiment. Periods when retail traders’ predictions of BTC falling peaked (the ‘blue’ zones) often present strong buying opportunities, while ‘red’ peaks, when the crowd expects a rise, signal profit-taking opportunities for professional players. At this point, renewed FOMO behavior explains why prices began to move sideways.

Bitcoin Bull Trap and Relief Rally

Analyst Chiefy stated, “Bitcoin has entered the last bull trap of this cycle,” adding that the current chart “echoes 2022.” BTC is forecasted to drop to $44,000 over the next ten days.

CryptoQuant analyst PelinayPA described the current rise as “just a relief rally.” They emphasized that the inflow of BTC to Binance relative to total exchange reserves remained low at 0.012:

“A low ratio indicates fewer BTC are being sent to exchanges, weakening immediate selling and supply pressure. Indeed, this could pave the way for a relief rally. When the ratio remains low, upward price reactions can trigger short squeeze scenarios—so be ready for a short-term jump.”

Institutional Influence and Market Manipulation

Analyst Bull Theory noted that following the Jane Street lawsuit halting market manipulations, the crypto market gained over $200 billion in just 48 hours. MN Fund founder Michaël van de Poppe added:

“Whether it’s options gamma games or software companies influencing BTC prices, it doesn’t matter. Bitcoin’s current market capitalization is still very low.”

What Is a Bull Trap?

A bull trap is a false upward signal in technical analysis that misleads investors and can cause significant losses. When a market is in a downtrend, prices suddenly break resistance levels, giving the impression that a rise has started. However, the surge is short-lived, and the asset falls sharply again, leaving bullish investors at a loss.

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The post Santiment Warns: Is Bitcoin $70,000 a Bull Trap? appeared first on Coin Engineer.

Bitcoin Eyes 70k While US Election Just Around The Corner

Tanju Akbıyık — Mon, 21 Oct 2024 18:00:17 +0000

Bitcoin is approaching the significant milestone of $70,000, hitting a high of around $69,450 early Monday in Asia, as attention turns to the U.S. presidential election. The election, just weeks away, is expected to have a growing influence on the crypto market.

The $70,000 mark is seen as a critical psychological resistance level for Bitcoin, as it edges closer to its all-time high of over $73,700 set in March this year. Analysts like Min Jung from Presto Research highlight the election’s potential to steer the market, especially with crypto becoming a mainstream political issue for the first time.

Former president Donald Trump’s rising odds in the election are seen as a factor driving Bitcoin’s price. Trump has been vocal in his support for the crypto industry, including sectors like NFTs, Bitcoin mining, and decentralized finance. While polls show Kamala Harris slightly ahead of Trump, the gap has narrowed significantly, and experts believe a Trump victory could boost crypto markets due to his pro-digital asset stance.

A win for Trump, especially combined with a Republican majority in Congress, could lead to the passage of digital asset reform plans, according to Augustine Fan of SOFA.org. This would be considered a positive outcome for the crypto sector.

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Following the election, another key event is the U.S. Federal Open Market Committee meeting, where a potential 25 basis point interest rate cut could further propel Bitcoin’s momentum if the Fed adopts a more dovish stance.

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