As earlier reported by TopNews, Bitcoin was having a volatile session on Sunday with price dropping to $82,350 levels. However, after spending nearly three hours in the lower price range, Bitcoin witnessed massive buying that pushed the prices to day's high at $85,117. As per the technical charts on TradingView, Bitcoin price surged within five minutes from $83,439 to $85,117. However, the price retraced back and during the same five minutes trade, Bitcoin closed at $84,587. Such moves are not uncommon for cryptocurrencies but traders have not witnessed them on weekends.

As per CoinGlass data, total liquidations for short positions stood at $28 million and for long positions at $48 million on major exchanges (at the time of publication of this report). The liquidations were almost six times higher compared to the data for Saturday.

Bitcoin is expected to breach $87,000 - $88,000 levels as per bullish scenario and we could see selling pressure around those levels. If Bitcoin faces rejection at those levels, we could see a quick decline towards $80,000.

At the time of publication of this report, Bitcoin was trading around $83,100 and Ethereum was trading around $1,900. Ethereum is facing resistance around $1,955 and a breakout above this level could lead us to next major resistance around $1,990 - $2,000.

The move in cryptocurrencies will also depend on overall sentiment in the financial markets. If US Stock futures remain positive, we could see Bitcoin trading firm, pushing up altcoins as well. In the recent times, Bitcoin's market dominance has jumped.

Stablecoins Gain Market Share

Stablecoins are steadily expanding their footprint in the crypto market, with their combined market capitalization reaching approximately $219 billion this week. This surge places them just $10 billion shy of Ethereum’s market cap, highlighting growing investor caution amid prevailing market uncertainty. The increasing dominance of stablecoins suggests a shift toward risk-averse strategies, as traders seek safer digital assets to navigate volatile conditions.

Bitcoin’s Next Move: A Bull Trap or Breakout?

Despite the bullish momentum, some market analysts are warning that Bitcoin may be forming a classic "bull trap"—a scenario where an initial price surge entices buyers before an unexpected decline.

Potential Upside Target: If Bitcoin breaks past $84,000, it could rally toward $87,000 before facing additional resistance.
Risk of a Reversal: A failure to sustain gains above $84,000 may trigger a sharp sell-off, catching overleveraged traders off guard.
Key Indicator – Market Sentiment: While traders remain optimistic, a sudden price drop could indicate the market is overheating.
Historically, bull traps lure traders into long positions before a sharp price decline, leading to liquidations and panic selling. If Bitcoin does not maintain its current upward trajectory, a sharp decline could follow, potentially testing the $78,000-$80,000 support range.