Bitcoin's journey to new highs is fraught with short positions traps, analysts warn that the market may replay the breakout trend of 2024.

According to Gate news, an experienced Crypto Assets analyst warns that the recent price movement of Bitcoin (BTC) may be laying the groundwork for a significant Liquidity Trap, echoing patterns observed in past cycles. As Bitcoin once again approaches an all-time high (ATH), the expert believes that market makers may be intentionally creating conditions to set up short positions before triggering a strong breakout.

The road to a historic new high is filled with Liquidity Traps Crypto Assets market expert Luca has provided intriguing insights into Bitcoin's recent price behavior, suggesting that the market may be entering a classic Liquidity Trap stage meticulously orchestrated by market makers. The analyst posted on X (formerly Twitter) that Bitcoin's price movement has been following a suspicious pattern since it peaked in late May 2025. He noted that despite experiencing several rallies during this period, no local high has been surpassed in the past few weeks.

Luca believes that this rare price structure may be a deliberate setup, creating a false sense of market stability and giving short positions a false confidence in their positions. He warns that market makers may influence market behavior by enticing shorts to enter or hold positions (assuming Bitcoin will continue to be blocked below resistance levels). This precisely supports a theory that, as Bitcoin prepares for its next bullish run, a short trap may be being set.

It is noteworthy that, as analysts emphasized on the Bitcoin 4-hour chart, several key resistance levels are now tightly clustered between 109,000 and 112,000 USD. While Bitcoin has been consolidating below this price level, seemingly building a potential bottom, Luca believes that this price behavior is no coincidence. He thinks that this relatively calm price movement is not a sign of market weakness, but rather reflects the meticulous planning by market makers to encourage short positions to become complacent.

The expert interprets the price's deliberate avoidance of the liquidity area above these resistance levels as a potential signal for setting up a deeper short positions trap. Luca revealed that this setup could be laying the groundwork for a sudden short squeeze, which may ignite a fierce rally for Bitcoin to launch an attack on new historical highs.

Analyst: BTC 2024 Model Breakthrough Market May Reappear To provide historical context for his analysis, Luca compared the current market structure with the long-term consolidation phase observed in 2024. In the second 8-hour chart, a descending resistance trend line can be clearly seen, which has suppressed Bitcoin's upward space for most of the previous year.

The chart shows that from March to October, the price attempted to break through the downward resistance line multiple times, all of which failed. Each failed breakout was accompanied by unbroken local highs — this is similar to the current market pattern, indicating that short positions are systemically protected.

This suppression was finally broken in November 2024, when Bitcoin broke through the resistance line and initiated a parabolic rise to set a new high. That breakthrough was driven by the same mechanism that Luca now believes is brewing. As historical patterns reemerge, this analyst insists that Bitcoin's current sustained suppression and untouched highs are part of a blueprint that could drive it into unknown price territories for a bullish trend.

Disclaimer: The above content does not constitute investment advice, please be cautious of risks.

(Source: NewsBTC)