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.
The 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.
As such, Santiment cautioned BTC traders that reversals often occur during periods of high optimism.
“With optimism high, remember that markets typically move opposite to the crowd’s expectations,” Santiment noted.
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.
