Is Bitcoin Bull Run on track or just another bullish trap?

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Bitcoin price seems to have regained lost momentum, but chain fractures despite the other side of the story. Undoubtedly, the price broke through the crucial resistance at $20,800 to mark highs near $21,500, but the reason behind the spike may not support a continued rise needed to reach the crucial resistance at $22,500.

Speculation of a short-term bounce is not based on BTC price experiencing a minor correction or facing consistent rejections at $21,000. But the on-chain data indicates the possibility of a bullish trap being set.

Net exchange flows, which are the difference between entries and exits, are booming towards the north. Values ​​that held along the middle levels, plunged hard indicating a huge hunt for trading tokens.

Source: Intotheblock

However, net flows rose sharply over the next couple of days as huge BTC entered wallets on exchanges. The supply on the exchanges increased sharply to $29.32 billion at the same time, with the number of BTC leaving the exchanges being very negligible.

Source: Messari.io

It can therefore be assumed that traders have kept their tokens on the exchanges, perhaps to liquidate them at the right time. This also underlines the short-term holding that could push the price down in the coming days. Retail traders do not appear to have played a significant role in the recent price spike.

As the BTC price surge appears to have been fueled by an institution or organization that has insider knowledge of bullish news or is looking for exit liquidity that could create FUD in the market. Therefore, market participants are bound to closely monitor the rise in Bitcoin (BTC) prices over the next 24-48 hours.

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