Bitcoin (BTC) price action is back in focus.
The cryptocurrency briefly touched $107,000 before reversing sharply. This move has left traders questioning whether the largest digital asset is beginning a sustainable breakout or another bull trap. In light of this, key insights are worth watching for the top coin moving forward.
BTC Hits Its Highest Weekly Close But Quickly Reverses
The first major insight is that Bitcoin recorded a weekly close at around $106,500. Despite briefly climbing to $107,000, BTC corrected promptly by about 4%, dragging the price back to nearly $103,000.
Notably, this pattern shows a liquidity grab, a tactic where the market pushes beyond a resistance zone, only to reverse and trap traders. This trend liquidated many positions, totaling $673 million across the crypto space in just 24 hours. Analysts say this classic trap took out shorts and punished late long entries.
CoinGlass data added more context by revealing renewed ask liquidity at $107,500, which acted as a ceiling. Bids dropped to $102,000 were removed. In total, $673 million worth of crypto positions were liquidated within 24 hours.
Still many market participants are optimistic about the Bitcoin price breakout. In a recent update, we covered that BTC’s technical indicators reflect bullish momentum.
According to the update, if BTC can close above $105,000 on the daily chart, analysts believe a push to a high of $109,000 is possible.
Caution Reigns as Macro Triggers Add Pressure
The second insight highlights how traders are staying cautious. Many avoid buying at current levels, especially since Bitcoin is near a major resistance zone.
Trader CrypNuevo emphasized that the risk-to-reward ratio does not favor entering now, pointing out that a confirmed breakout would be safer. High timeframe charts remain bullish, and April’s retest of the 50-week exponential moving average still supports longer-term optimism.
In addition to this, macro uncertainty remains in focus. Ongoing U.S. trade deals and the recent Moody’s credit downgrade have created market volatility. Stocks dipped slightly, and this climate has helped Bitcoin stay resilient.
A weaker U.S. dollar could work in BTC’s favor. As noted in our earlier post, BlackRock CEO warns U.S. debt may push Bitcoin to challenge the dollar as a global reserve currency. However, rate cut hopes are cooling, with FedWatch Tool data showing only a 12% chance of cuts in June. Jobless claims this week may shift expectations further.
Another major insight to watch is the crypto market’s correlation with stocks, which paints a mixed picture. Crypto has shown resilience, but a clear trend between equities and Bitcoin remains unclear, adding another layer of uncertainty for investors.
Lastly, the exchange volume delta is being watched closely. Analysts from CryptoQuant note that it is a key signal in spotting whether BTC’s breakout attempts have strong backing or are simply short-lived liquidity moves.
With Bitcoin still hovering near crucial levels, the BTC bets from Metaplanet and Strategy remain a bullish factor to note. The coming days may decide if this was a real move or just another trap. MarketCap data shows that the coin was trading at $102,964.99, down 0.82%.