$87M In Bitcoin ‘Buy Walls’ Won’t Save You If This Final Bull Trap Sends BTC Crashing To $40,000

Could Bitcoin be in a bull trap right now? Here’s why a $87M in Binance buy walls might fail, and if BTC could crash to $40,000 soon.

The first few weeks of the year have turned into a psychological battle for crypto investors. 

Bitcoin itself has spent months bouncing between $85,000 and $93,000 without a clear direction. 

However, despite this, many retail traders feel safe because they see massive “buy walls” on major exchanges. Still, veteran market watchers are warning about a bull trap that could wipe out billions in value. 

They believe that the market’s current stability is temporary before a deep correction.

The Bitcoin Bull Trap at $90,000

Ted Pillows took to X to explain that there is a huge concentration of capital defending the lower $90,000 range,l according to the charts. 

He says that this barrier has formed with $87,280,000 in buy orders, which are layered between $90,000 and $93,000 on Binance. These orders act as a psychological anchor for the market, and traders are assuming the price cannot fall further. 

They believe that “smart money” is stepping in to keep the price high.

However, Pillows warned that this is the perfect environment for a bull trap. 

He says that if the price bounces off this wall, it could force a “short squeeze.” Over $1.5 billion in short positions currently sit below $95,000 and a quick move upward would force these traders to buy back.

If this happens, it could push BTC toward six figures.

Why Buy Walls Can Be Deceiving

The problem with these bids is that they are passive. A person who places a massive order can cancel it in a second and demolish the wall.

Usually, market makers often pull their buy walls just as the price gets close and this could create a “vacuum” effect where the price falls even faster because no one is there to catch it. 

If the $90,000 support breaks, very little liquidity is there to stop a slide toward $86,000.

According to Pillows, these walls might be “spoofed” to make the market look stronger than it actually is, and when a large entity decides it is time to take profits, these passive crashes the wall and leaves retailers with losses.

Related Reading: $100B Erased From Crypto in Hours: Was Bitcoin Crash Coordinated?

The Ghost of the 2021 Market Crash

Another technical analyst called Lofty warned that we are watching a repeat of the 2021 bull run. 

He says that the consolidation at $90,000 is not a base for a new high. Instead, it is the peak of a Bitcoin Bull Trap, as Pillows mentioned. The 4-year cycle usually includes a violent reset before the final stage of growth, and history shows that Bitcoin often drops by 75% to 85% during these cycles.

Lofty believes that the cycle rhythm is still intact, and a massive correction could be due very soon. 

If Bitcoin were to drop to $40,000, this would be a 55% decline from the recent highs. And while this sounds impossible to many, it is tallied with previous market “resets,” which makes the threat very real.

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