TLDR:
- Bitcoin broke $106.6K as short liquidations and spot volume signaled a bullish reversal.
- The bear trap played out with falling funding and rising open interest, triggering liquidations.
- Rekt Capital sees $109.4K as a springboard; the next resistance lies at $111.7K.
- Spot buying rose as open interest dropped, confirming a momentum shift in real-time data.
Bitcoin is showing renewed bullish momentum as key technical and on-chain signals converge. A breakout from previous resistance zones and a textbook bear trap played out in recent sessions.
Traders using real-time data with price action gained a critical edge. Market reactions reflected precision-driven movements, erasing short positions while driving volume higher. This coordinated activity reflects shifting market sentiment after weeks of sideways pressure.
Bear Trap Wipes Out Shorts Amid Rising BTC Price
Market observers noted a textbook bear trap unfold as Bitcoin’s price climbed steadily, even as funding rates dipped.
According to trader Luca from CrypticTrades, open interest surged while funding declined, indicating aggressive shorting by bears. As the price moved higher, those short positions were squeezed, causing a cascade of liquidations.
$BTC – This is exactly why on-chain data correlation with real-time price action is absolutely crucial.
The setup was textbook perfect, and I called it in my last update:
The Bear Trap Formation:
Price grinding higher ✅
Open Interest spiking ✅
Funding Rates declining ✅… https://t.co/HFuPcoYrnX pic.twitter.com/qA8WOnWisS— Luca (@CrypticTrades_) June 10, 2025
Luca explained that market makers capitalized on this misalignment by triggering a sharp price spike. Spot volumes surged, open interest dropped, and funding rates bottomed, marking the capitulation point. This real-time scenario underlines how pairing on-chain data with market structure offers actionable insights.
Bitcoin crossed the $106,600 resistance, skipping the $106,600–$109,443 range entirely, according to Rekt Capital.
He described the daily candle from June 9 as strong and indicative of building strength. The market is now retesting the $109,443 level, which could act as a springboard for higher moves.
If BTC closes above this threshold, the next target lies at $111,723, just before potential all-time highs. This structure resembles the late-May price pattern, where a successful retest preceded continued upward momentum.
Phenomenal Daily candle yesterday, breaking through ~$106600 (black) resistance comfortably
In fact, Bitcoin has skipped through the $106600-$109443 Daily Range entirely (black-black)
Bitcoin is once again positioning itself like in late May for a retest (green circle)… https://t.co/DKHTl80OUf pic.twitter.com/6CdavL9X9Y
— Rekt Capital (@rektcapital) June 10, 2025
Analysts note this shift follows a two-week downtrend that was shaped by geopolitical tensions earlier in June.
Bitcoin On-Chain Metrics Support Price Action Breakout
The surge in Bitcoin price coincided with clear signals in market data, creating a high-confidence trading environment.
Spot buying activity increased as open interest dropped sharply, consistent with a short liquidation cycle. These events confirmed that the market direction aligned with the underlying positioning.
Luca emphasized that without this correlation, price action would appear random. When price and metrics align, however, the pattern becomes clear. This fusion of data provided traders with the confidence to act decisively during volatility.
At publication, CoinGecko shows BTC at $109,848 with a 24-hour volume of over $36 billion. BTC is down 0.33% on the day but up 4.12% over the week. This positioning near $110,000 suggests ongoing strength and a potential push toward new highs if resistance levels break.
