Bitcoin experienced two consecutive double trap setups in recent months, when smart money skillfully offloaded billions without immediately crashing the market.
Behind the price peaks of $123,000 and $124,000 was a calculated distribution strategy, which lured many investors into FOMO. The key question now is: Is this the end of the cycle or merely preparation for another leg up and a full-blown altseason?
When Bitcoin Peaks and Stealth Distribution Unfolds
In his latest analysis, trader Anderson highlighted crucial points regarding Bitcoin (BTC) trading activity in July and August 2025.
July marked a milestone as Bitcoin broke above $123,000 for the first time, fueling strong belief that the market was entering a new growth phase. However, almost immediately afterward, Galaxy Digital confirmed that a Satoshi-era wallet sold over 80,000 BTC, valued at roughly $9 billion.
Remarkably, this massive sale barely shook the market, as liquidity peaked — enough demand existed to absorb the selling pressure. This was a textbook distribution play for smart money: using bullish sentiment and fresh inflows to quietly exit positions, without causing a collapse.
Bitcoin climbed to $124,000 by August, reinforcing that momentum remained intact. Yet contrary to expectations, buying power proved insufficient to sustain the breakout. Prices quickly lost stability, leaving late buyers trapped at the top.
“The August failure was the market’s tell: breakout buyers were trapped, and the July sale wasn’t noise,” analyst Mr. Anderson noted on X.
This was the essence of the Bitcoin double trap: two consecutive peaks — one masked by large-scale distribution, and the other enticing retail investors into FOMO—the result: a realization that the market lacked genuine momentum.
Technical Levels and What Comes Next
Attention now shifts to key technical thresholds. The $112,581 level is the first Critical Close Level (CCL). If bulls fail to defend it, a deeper correction toward $98,000 becomes increasingly likely. Conversely, if buyers can reclaim and hold above $116,891 (the second CCL), Bitcoin may test the $124,000 zone again.
Rather than interpreting the July–August events as cycle-ending, investors should recognize them as professional distribution within a broader market roadmap.
“This isn’t cause for panic. But it is a reality check. If you’re truly bullish, you should want Bitcoin to reassert dominance and climb through the CCLs,” Anderson shared on X.
To restore its structural strength, Bitcoin must consistently hold above $112,000. Successfully closing above $112,581 and $116,891 would reopen the path toward $124,000. The market could only build momentum for the next growth phase, targeting $148,000 and sparking a genuine altseason.
“Without this recovery, BTC risks stagnating and leaving only a shallow, scattered alt rotation in its wake.” Anderson shared on X.
The recent Bitcoin double trap shows that the crypto market remains a battleground of strategy and psychology. Smart money manipulates liquidity and sentiment to shape expectations. Risk management must be front and center for investors in an environment vulnerable to such tactical deceptions.
When writing, Bitcoin is trading at $112,540, down 0.4%.
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