‘$1 Million BTC’ Advocate Mow Points to Bear Trap Setup as Bitcoin Loses $100,000

Bitcoin has been in a slump over the last three days, losing about 10% of its market value as the main cryptocurrency fell from about $108,000 to about $97,000. The market fell quickly, hitting key short-term levels and pushing positions that had not been touched since October.

Samson Mowthe face of the ongoing $1 million Bitcoin debateHe dismissed the whole decline with a comment, calling it an “obvious bear trap.”

Glassnode recorded its biggest loss of the quarter during the drop, when coins in the 3-6 month age range moved and about $600 million was lost in an hour. This cohort usually reflects holders who are not very reactive, so they see coming out in great signs that the frayed nerves have finally broken.

U Bitcoin price behaves similarly. When it fell to $97,000, it was immediately snapped up by the spot markets once the wave of forced liquidation had passed. Most of the pressure came from overextended positions rather than widespread distribution.

Clean up

The derivatives desks indicated three areas of concentration – around $101,000, $99,500 and $97,800 – where the old longs were swept away. Once those pockets were cleared, the tape no longer exhibited the aggressive follow-through that you normally see with deeper relaxation.

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When you put it all together, the mix of local capitulation, liquidation-driven flow and rapid response in place makes the move more of a cleanup than a structural break.

This is the background behind Mow’s comment, and it keeps the focus on how Bitcoin is doing around the $97,000 mark now that the forced selling has passed.