The analysis identifies three bear traps, each marking a false breakdown followed by a strong bullish reversal.

The first trap occurred around the $40,000–$45,000 level in late 2024. A brief decline triggered bearish sentiment, only for the price to reverse sharply upward.

A second trap followed at the $50,000–$55,000 range, accompanied by a “Change of Character” (CHoCH) signal, indicating a shift in market structure toward a bullish trend.

The most recent trap, labeled Bear Trap 4, occurred near the $70,000–$78,000 zone, where Bitcoin dipped but quickly rebounded, trapping sellers anticipating a deeper correction. Analysts note that this pattern forms a fractal—a repeating structure that scales across price levels—reinforcing the strength of the ongoing uptrend.

Adding to the bullish narrative, the chart shows a Weekly RSI (Relative Strength Index) breakout, with the indicator climbing above the 60 level earlier in the trend.

As of the latest data, the RSI stands at 65.12, edging into overbought territory, which typically signals strong momentum but also raises the possibility of a pullback.

The RSI’s earlier breakout, circled on the chart, has fueled optimism, though a question mark over a potential new breakout suggests uncertainty as Bitcoin approaches higher resistance levels.