Bitcoin Exceeds Short-Term Holders’ Realized Price of $91,000

Bitcoin (BTC) has surpassed the short-term holders' realized price of $91,000, raising questions about the sustainability of this price increase amid concerns of a potential bull trap.

Price Movements and Market Sentiment

BTC recently traded in the low $90,000s for the first time since March, gaining 5.6% within 24 hours.
Positive sentiment was boosted by US President Donald Trump's announcement of lower tariffs on China.
Analysts suggest caution as BTC approaches a critical resistance level amidst speculation of a possible double top formation.

Insights from analyst Avocado_onchain indicate that:

Short-term holders often sell during rallies to new market entrants.
This cohort typically transitions into longer holding periods during downturns.
The current market cycle may resemble the previous double top pattern seen in 2021.

Concerns also arise from macroeconomic factors and limited market liquidity, which could affect BTC's momentum. Analyst Xanrox warns that recent price movements might be a trap for retail investors, with BTC currently trading at $93,754.