Key Points

• The current weakness in Bitcoin’s price might lead to a significant short liquidation event as bearish sentiment grows.
• New forecasts indicate that market makers are potentially setting up large bear traps intentionally.
• BTC’s price is now back at $113,000, with the short positions being cleared out.

Bitcoin (BTC) may see its “next major short squeeze” in a few weeks as market makers play a crucial role in what could be a major bear trap.

A recent prediction by Trader Luka points to BTC’s price patterns mimicking previous breakouts expected in late 2024.

Market Makers and Bearish Sentiment

Order books on Bitcoin exchanges might hold the key to BTC/USD’s movements in the coming weeks, potentially benefiting the bulls.

Reflecting on recent price actions, Luka argues that the absence of new highs isn’t necessarily a negative sign.

“We peaked in mid-August, so observe how the $BTC price has changed over these weeks. One high hasn’t been completely wiped out,” he notes.

“I think the reason is that shorts are sheltered in the short term.”

There’s a suggestion that market makers might be artificially stabilizing the market, leading short sellers to believe their positions will pay off.

“We’ve seen this pattern before in 2024 during a significant integration phase where we didn’t reach previous highs until the breakout in November.”

The longer these conditions persist, the more content shorts become, setting the stage for a potential short squeeze event. Luka has concluded:

“This could lead to the next big short squeeze soon, and though it seems counterintuitive, I believe it’s a good sign that you’re safe right now and won’t lose those highs.”

BTC Price Movement Confirmation

Many market observers are convinced that Bitcoin is on the verge of hitting a new low, as reported by Cointelegraph.

Related: BTC vs. ‘verbearish’h’ Gold Breakout: 5 Key Insights on Bitcoin This Week

The $100,000 mark remains a common target for pessimists, with discussions revolving around bearish divergences in major indicators.

BTC/USD has returned to $113,000, with Coinglass data showing about $100 million in cryptocurrency liquidations over the last 24 hours.

This development might signal the conclusion of the price correction that started from the all-time high in mid-August.

“Bitcoin has fully confirmed its technical breakout,” remarked trader and analyst Rect Capital, sharing updates with followers.

“Daily closures and/or retests around the ~$113,000 area (red) confirm that positive trends will continue.”

This article does not offer investment advice or recommendations. All investment and trading activities carry risks, and readers should conduct their own research when making decisions.