Bitcoin Bull Trap or Real Breakout? A Deep Technical Analysis of the $65K–$72K Bitcoin Market Structure

4 days ago

4 min read

DADS DeFi Space · Bitcoin Technical Analysis & Market Structure Breakdown

Is This Bitcoin Bounce the Start of a New Bull Run — or a Classic Bitcoin Bull Trap?

Bitcoin just bounced hard.

After a violent crypto liquidation event, extreme fear sentiment, and a major reset in leverage, BTC ripped upward from the $70K region. Shorts were squeezed. Funding rates flipped. Traders rushed back in.

Now the dominant question across crypto:

Is this the beginning of the next bull leg — or a Bitcoin bull trap?

This article breaks down the current Bitcoin market structure using pure technical analysis — no narratives, no hype, no prediction-based bias.

At DADS DeFi Space, this is not a signal channel. This is a process-driven analysis of how to navigate:

Bitcoin corrections
Relief rallies
Post-liquidation resets
Bull trap structures
Key Bitcoin support and resistance levels

Let’s zoom out.

What Just Happened? The Post-Liquidation Bitcoin Reset

Before we label this move bullish, understand what triggered it.

We just saw:

A sharp crypto liquidation cascade
Heavy long liquidations
Extreme fear in sentiment indicators
A short squeeze bounce from $70K
Rapid funding normalization

This wasn’t organic expansion.

It was a mechanical reset.

In markets, when leverage becomes excessive, price moves violently to clear positioning. That clearing process often produces a Bitcoin relief rally — not necessarily a breakout.

And relief rallies inside corrections frequently turn into Bitcoin bull traps.

Why This Is Not Confirmed Bullish Bitcoin Structure Yet

From a technical standpoint, Bitcoin remains below critical trend indicators:

20-Day EMA
Bull Market Support Band
50-Week EMA

These are not small levels.

These moving averages historically separate bullish continuation from macro correction.

Until Bitcoin reclaims those levels with strong daily closes, this remains a Bitcoin correction — not confirmed bull market continuation.

This is the difference between:

Reaction vs. ExpansionRelief rally vs. BreakoutShort squeeze vs. Trend reversal

Bitcoin Support and Resistance: The Critical Levels

If you're searching for Bitcoin support and resistance levels, these are the zones that matter most.

Major Bitcoin Support: $63K–$65K

This zone represents:

High-volume node
Cost basis cluster
Structural midpoint of bull expansion
Long-term demand shelf

The $63K–$65K area is macro Bitcoin structural support.

If this level holds on higher timeframes, long-term structure remains intact.

If this level breaks with strong volume and acceptance below it, the Bitcoin correction deepens significantly.

Bitcoin Resistance & Pivot: $70K–$70.5K

Right now, Bitcoin is fighting at the $70K level.

This is:

Psychological resistance
Local structure pivot
Short-term supply zone

Reclaiming $70K temporarily is not enough.

The key question is:

Can Bitcoin flip $70K into confirmed support with strong daily closes?

Without acceptance, the risk of a Bitcoin bull trap increases.

Confirmation Level: $72K

For bulls, the level to watch is $72K.

A strong daily close above $72K would:

Break local lower-high structure
Confirm resistance reclaim
Open liquidity toward $80K
Invalidate short-term bearish structure

Until then, this remains corrective structure.

Even during a Bitcoin bear market correction, bullish bounces can happen. But confirmation is required.

What Does a Bitcoin Bull Trap Look Like?

If you're wondering “what is a Bitcoin bull trap?”, here’s the structure:

Bitcoin reclaims a key resistance level (like $70K).
Funding rates flip positive quickly.
Retail traders FOMO into long positions.
Social sentiment turns euphoric.
BTC pumps toward $75K–$79K.
Price rejects sharply.
Daily close back below $70K.
Breakdown accelerates.

That sequence defines a classic Bitcoin bull trap.

The trap isn’t the bounce.

The trap is emotional overcommitment before confirmation.

What Are Altcoins Telling Us?

Bitcoin dominance matters during corrections.

Right now:

Ethereum is underperforming BTC.
Many altcoins are bouncing, but not showing sustained strength.
If BTC loses $70K again, ETH/BTC likely weakens further.

Healthy bull market structure usually includes altcoin participation.

When altcoins bleed back into Bitcoin, that signals defensive positioning — not expansion.

Risk Management During a Bitcoin Correction

This environment rewards discipline.

During a Bitcoin correction or potential bull trap, avoid:

Over-leverage
Emotional sizing
Chasing green candles
Ignoring invalidation levels

Instead focus on:

Defined stop losses
Structural confirmation
Smaller position sizes
Waiting for daily closes

The goal is not to predict Bitcoin’s next move.

The goal is to survive long enough to trade confirmed structure.

How I’m Navigating This Bitcoin Market Structure

My approach is simple:

Watch the levels. React to structure.

Key levels:

$65K = Macro support
$70K = Structural pivot
$72K = Confirmation trigger

Above $72K → Reassess bullish bias.Below $70K → Treat bounce as relief.Below $65K → Defensive posture accelerates.

No predictions.

Only reactions.

Frequently Asked Questions (FAQ)

Is this Bitcoin bounce a bull trap?

It could be. A Bitcoin bull trap occurs when price reclaims resistance temporarily, attracts long positions, then reverses and breaks back below key levels. Until Bitcoin confirms strength above $72K with strong daily closes, this bounce remains a relief rally inside a broader correction.

What is a Bitcoin bull trap?

A Bitcoin bull trap is a false breakout where BTC briefly moves above resistance, triggers bullish sentiment, and then reverses sharply. Traders who enter aggressively without confirmation often get trapped in losing long positions.

What are the key Bitcoin support levels right now?

The most important Bitcoin support levels are:

$63K–$65K (macro structural support)
$70K (short-term pivot)

Losing $65K would likely accelerate downside pressure in the current Bitcoin correction.

What confirms a real Bitcoin breakout?

A confirmed breakout requires:

Strong daily close above resistance (currently $72K)
Follow-through buying
Higher lows above reclaimed levels
Volume confirmation

Without those elements, breakouts risk turning into bull traps.

Is Bitcoin still in a bull market?

From a long-term perspective, Bitcoin can still be in macro expansion. However, structurally, it is currently in a correction phase until key resistance levels are reclaimed.