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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