Bitcoin's price is showing a potential dip, with analysts urging investors not to get "trapped" at higher levels . Specifically, Bitcoin price analysis focuses on a potential dip with the $118.8K level in focus .
As Bitcoin continues to trade near its highs, traders are being urged to exercise caution. Data from Cointelegraph Markets Pro and TradingView showed BTC/USD circling $121,000 as the week's first US trading session began . New all-time highs near $123,250 had capped a blistering rally earlier today, with Bitcoin still up over 10% in a week .
One trader warned of a potential “pump and dump” ploy to trap late buyers at higher levels . Bitcoin is overdue a support retest, and order-book liquidity points to a trip below $119,000 next .
While many expected the market to pause for breath after such rapid upside, indications suggest caution is warranted . “Don't get trapped!” warned Material Indicators . An accompanying chart showed order-book liquidity for the BTC/USDT trading pair on largest global exchange Binance . “Watch out for a rug pull if price gets close,” Material Indicators added .
The latest data from CoinGlass highlighted key support beginning at $118,800, leaving the door open for a roughly 2% correction next . Total BTC short liquidations in the 24 hours to the time of writing were $432 million .
Despite potential short-term corrections, some analysts remain bullish on Bitcoin. Bitwise CIO Matt Hougan believes Bitcoin could end the year closer to $200,000 . 10x Research has set targets of $140,000 to $160,000 for 2025, while other forecasts suggest Bitcoin could reach $130,000 to $150,000 by year-end .
Overall, the Bitcoin market presents a complex picture, with potential short-term corrections but also long-term bullish prospects. Traders are urged to be cautious and heed analysts' warnings about potential traps.