Bitcoin (BTC) price broke through last week’s sell zone around $69,000 to reach a seven-day peak on April 6, amid mixed market sentiment.
The flagship coin had gained 4.11% in the past 7 days to trade at about $70,003 at press time. Bitcoin added more than $55.6 billion in its market capitalization on Monday, to reach $1.39 trillion at the time of reporting.
BTC/USD 7-day chart. Source: FinboldThe BTC price surge today was largely fueled by a short squeeze, as more traders who anticipated a further drop got rekt, thereby boosting bullish sentiment. During the past 24 hours, out of the $153 million liquidated in the Bitcoin derivatives, $145.55 million involved short traders, according to data from CoinGlass.
Is the Bitcoin price rebound a bull trap?
The recent BTC price rebound has occurred amid a significant bearish sentiment among traders. Furthermore, the macro falling trend, characterized by multi-month choppiness and similar sentiments to the 2022 crypto winter, had emboldened sellers.
However, following today’s BTC price surge that triggered heavy liquidation of short traders and catalyzed a short squeeze, a spike of FOMO (fear-of-missing-out) buyers was recorded, as per analytics from Santiment. Precisely, the third most greedy Bitcoin crowd in 2026 was recorded on April 6 based on Santiment’s ratio of positive and negative sentiment.
BTC ratio of positive vs negative sentiment. Source: SantimentAs such, Santiment cautioned BTC traders that reversals often occur during periods of high optimism.
From a technical analysis standpoint, if Bitcoin price breaks its two-month peak of about $75,900, a rally above $80,000 will be supported, invalidating a midterm bull trap. However, a reversal below $66,715 would validate a BTC bull trap.
Source: https://finbold.com/is-bitcoin-price-rebound-above-69000-a-dead-cat-bounce/
