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Bitcoin Breaks Above $70,000: Start of a Bull Run or a Smart Trap?

Bitcoin (BTC) has made a sharp move upward in the past 24 hours, breaking through the psychological resistance of $70,000. Trading volume jumped by over 18%, while market sentiment is now nearing "Extreme Greed" according to the Fear & Greed Index.

What Triggered the Surge?

  • Lower-than-expected US inflation: A softer CPI report led to a capital shift toward risk-on assets like crypto.
  • ETF inflows: BlackRock and Fidelity reported record net inflows into their spot BTC funds.
  • Declining exchange reserves: According to Glassnode, BTC held on exchanges hit a 3-year low, signaling long-term accumulation.

On-Chain Data Insights

  • MVRV Ratio: Currently in the upper-neutral range — not yet overvalued.
  • Dormancy Flow: Low activity from old coins — long-term holders are not selling.
  • Funding Rates: Positive but not excessive, indicating healthy futures positioning.

Is This Rally Sustainable?

Some analysts warn that the sharp upward move may lead to a short-term correction. The possibility of a bull trap remains, especially if the Fed signals a hawkish stance in upcoming meetings.

Key Levels to Watch

  • Resistance: $72,400
  • Support: $67,800

A confirmed breakout above $72,400 could pave the way for new all-time highs.

Conclusion

Bitcoin is at a pivotal moment. While many believe this could be the beginning of a major bull cycle, caution is still advised due to macroeconomic uncertainty.

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Tags: Bitcoin, BTC Price, Bitcoin July 2025, Bitcoin Resistance, BTC Analysis, On-chain Data, Crypto News, Market Sentiment, ETF Bitcoin