Bitcoin’s $80K Rally Is a Trap, Analyst Warns of $45K Drop

Bitcoin (BTC) spent this past week ripping from the low $60,000s to just under $80,000, and to trader Nonzee, none of it looks like conviction. They are calling the move a trap built on forced buying rather than real demand, and say the next leg is down, not up.

The Case for a Distribution Phase, Not a New Bull Run Nonzee’s argument starts with the size of the squeeze, where more than $3.1 billion in short positions were wiped out during the run, and Bitcoin alone was responsible for roughly $1.65 billion of that figure.

In their view, that is what actually pushed the price higher, not a change in sentiment. “That was not a reversal. It was a liquidity squeeze,” they wrote.

The trader tied the timing to two catalysts: Trump putting the CLARITY Act back in the headlines and the Treasury Department increasing its long-term bond buybacks. Both, they argue, forced shorts out and pulled fresh longs into a market that was already stretched thin.