Bitcoin Traders Eye Bear Trap as BTC Hits 10-Day Peak at $60.4K

Bitcoin, the preeminent cryptocurrency, soared above $60,000 on July 14 following a tumultuous event: an assassination attempt on United States presidential candidate Donald Trump. This unforeseen incident incited notable volatility in BTC prices.

BTC Price Peaks Above $60,400

Data from Cointelegraph Markets Pro and TradingView indicated a significant surge in the crypto market as the news broke about the attack, from which Trump emerged unscathed. On Bitstamp, Bitcoin reached local highs of $60,423, marking its apex since July 4.

Weekend Rally Sparks Optimism

In an uncharacteristically strong weekend performance, traders were keenly observing the weekly close and the onset of traditional market trading for signs of sustained momentum. Prominent trader Crypto Tony expressed enthusiasm, noting that reclaiming $60,500 would be a strong bullish indicator.

Similarly, trader and analyst Rekt Capital emphasized the importance of this price level, with BTC/USD striving to uphold a post-halving “reaccumulation range” that now faced jeopardy. He highlighted that Bitcoin needed to secure $60,600 as support within 24 hours to maintain this critical range.

Potential for Bear Trap

Bitcoin’s 5% rise from its July 12 close also hinted at a significant “gap” in CME Group Bitcoin futures that might be poised to fill. However, popular trader Daan Crypto Trades cautioned about a potential bear trap, suggesting the current low liquidity and volumes could lead to unexpected market movements.

“Still a weekend move, but if there’s ever a place to just run away with it and keep a lot of market participants sidelined, I couldn’t think of a much better spot to do so,” he mentioned in his latest post on X.

Market Dynamics and Technical Indicators

As of the latest data from CoinGlass, ask liquidity clustered around $60,660, with robust support forming below the $60,000 threshold. This rally to 10-day highs enabled BTC/USD to attempt reclaiming the pivotal 200-day moving average, situated at $59,207 on July 14.

This 200-day moving average is among several “bull market trendlines” Bitcoin lost in recent weeks. As previously reported by Cointelegraph, these include the short-term holder realized price—the aggregate cost basis of Bitcoin market speculators.

Additionally, data from on-chain analytics resource Checkonchain, shared by its founder Checkmate on X, indicated that the average purchase price for investors in US spot Bitcoin exchange-traded funds was approximately $58,240 as of July 10.