Bitcoin Faces Potential Bull Trap Amidst Price Recovery Concerns
- Bitcoin is currently trading below $70,000, struggling to close above this level consistently.
- Crypto analyst Sherlock warns that a rally between $72,000 and $76,000 could be a “kill zone” for bulls.
- Strategy holds approximately 714,644 BTC at an average cost basis of $76,052, representing about 3.4% of total Bitcoin supply.
- Spot Bitcoin ETFs hold around 1.28 million BTC, with an average entry price between $84,000 and $90,000.
- Since late 2025, these ETFs have seen over $6 billion in net outflows.
The current Bitcoin trading range below $70,000 has analysts divided on its future direction. While some see potential for further gains, others caution that reaching higher levels like $76,000 could trigger selling pressure from large holders such as Strategy and ETF investors who are near their breakeven points.
With Bitcoin trading at approximately $66,980, any significant upward movement might lead to increased selling as investors aim to minimize losses or break even at higher price points like those seen in the past.(Source )
