Bitcoin’s 20% Bounce Looks Like a Bull Trap Despite Improving US Demand — Here’s Why

Bitcoin has rebounded nearly 20% from its dip near $60,000, sparking hopes of a local bottom, supported by recovering US demand indicators like the Coinbase Premium Index. However, several warning signs suggest this rally is a potential bull trap. The Klinger Oscillator shows a bearish divergence, indicating that large money flow is not strongly supporting the price recovery, mirroring patterns that preceded previous major declines. Furthermore, the price action resembles a bear flag pattern following a sharp drop, which often signals a continuation of the downtrend, potentially leading to a 40% crash. On-chain data also shows a significant increase in short-term holder supply during the rebound, suggesting rising speculation rather than deep conviction. Key resistance is at $72,330; failure to reclaim this level keeps the rally vulnerable, with potential downside targets as low as $43,450 if support at $67,350 breaks.

(Source：BeInCrypto)