Is Bitcoin Price Set to Hit New ATH or “Bull Trap” In Play?

Key Insights:

• Matrixport analyst Markus Thielen predicted further rally in Bitcoin price as long as price remains over $105,075.
• Bitcoin cumulative volume delta (CVD) and spot Bitcoin ETF inflow indicate optimism among investors.
• Expert trader Peter Brandt warned about a potential 75% correction if Bitcoin repeats a historical pattern, while options traders showed mixed sentiment.

Bitcoin price saw a euphoric surge, rallying from $105K to above $110K, as US-China trade talks resumed in London on Monday. Traders anticipated optimism following headlines suggesting progress, but vague remarks from US officials caused prices to pause.

At the time of writing, BTC price recorded a pullback to $109K as investors evaluated whether a “bull trap” is in play. The focus has shifted to the US CPI and PPI inflation data this week.

Bitcoin Price Has More Room to Rally: Matrixport

Matrixport analyst Markus Thielen predicted that Bitcoin price rally to continue further. BTC broke above its short-term downtrend trendline to trigger a rally above $110K. He pointed out a bullish breakout from a consolidating triangle, a pattern usually associated with trend continuation.

While Matrixport expected a quieter price movement this summer due to historical seasonality, the breakout suggested fresh capital flow in the market. He expected more upward trend despite pressure from various macro events such as the US CPI and PPI inflation. Also, the Fed is expected to cut rates once this year.

At the time of writing, the CME FedWatch showed a 99.9% probability of no change in rates by the Fed in the June meeting. However, there’s a 54.5% probability of a 25 bps rate cut in September. Also, a 36% chance of no change in interest rates. Besides, the hawkish stance at the latest FOMC minutes has further fueled speculations.

Matrixport analyst predicted a bullish trend remaining intact above $105,075. However, traders need to keep an eye on Bitcoin price moves toward the support.

Bitcoin Cumulative Volume Delta Shows Buyers Dominate

According to a CryptoQuant analysis, buyers are dominating again after 4 months of taker sell activity (red). The green Bitcoin cumulative volume delta (CVD) bars were back, signaling renewed buying pressure. As per the analysis, green phases had often preceded strong uptrends historically

The massive buying activity was evident in the latest spot Bitcoin ETF inflow data. US Spot Bitcoin ETFs saw a net inflow of $386.2 million on Monday. BlackRock’s IBIT recorded $120.9 million in inflows, while Fidelity’s FBTC saw $173 million in inflows.

Moreover, Bitcoin is forming a cup and handle pattern on the daily timeframe, with price currently consolidating within the handle. BTC price is expected to witness a pullback to reinforce bullish momentum at this level.

A breakout above the handle would confirm the pattern and likely lead to a new high. Conversely, a breakdown below the handle would invalidate the setup and signal potential weakness.

Experts Hint At Odds of Bitcoin Price Correction

Options trading platform GreeksLive revealed mixed sentiment among traders, acknowledging the bullish trend while expressing frustration over unpredictable market moves driven by large institutional buyers around $105-110K levels.

As per the data, most traders were cautiously positioning with puts despite the upward momentum in the last 24 hours, citing concerns about volatility pricing and market manipulation.

Legendary trader Peter Brandt took to X and warned about a potential repeat of the 2022 script by Bitcoin price. He added that the price could set for a 75% correction if the pattern continues.

Bitcoin price was trading at $109,500 at the time of writing. The 24-hour low and high were $106,634 and $110,561, respectively. Furthermore, the trading volume increased further by 46% in the last 24 hours, indicating a rise in interest among traders.

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