Bitcoin is experiencing a holiday rally, with a potential bear trap setup as short liquidity clusters build. The cryptocurrency remains 25% below its all-time high of $126,000, following a Q4 pullback that erased 63% of gains from Q2 to Q3. Bitcoin's dominance in the market is steady at nearly 60%, while altcoin dominance has dropped to a five-year low of 6.73%.
A significant $5.8 billion short-liquidity cluster has formed around the $95,000 mark, and the Relative Strength Index (RSI) is at 35, suggesting a possible bear-trap scenario. Analysts indicate that a move above $90,000 could trigger a broader market rally, potentially reversing recent losses.
Bitcoin's Potential Bear Trap as Short Liquidity Clusters Form
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