The crypto market has once again turned volatile, and this latest Bitcoin warning is one every trader should take seriously. Over the last few days, Bitcoin saw a short-term pullback, causing many retail investors to panic sell. But behind the scenes, institutions like BlackRock have been quietly buying billions worth of Bitcoin — turning this dip into what could be a massive price trap.
Bitcoin ETF Inflows and BlackRock Buying Spree
While the market experienced fear and uncertainty, Bitcoin ETFs recorded enormous inflows. On Monday alone, more than $1.2 billion entered Bitcoin ETFs, followed by another $875 million on Tuesday. That’s over $2 billion in just two days — the second-largest inflow week ever recorded.
Most of this money came from institutional players. The BlackRock Bitcoin ETF alone purchased around $970 million worth of Bitcoin on Monday and another $900 million on Tuesday. While retail traders were panic-selling, Wall Street was accumulating Bitcoin at record levels.
This sharp contrast highlights the Bitcoin price trap many retail investors fall into — selling too early when fear rises, just before institutions push the price back up.
Short-Term Price Action and Bitcoin RSI Setup
Despite the recent drop, Bitcoin’s structure remains bullish on larger timeframes. On the weekly chart, the super trend indicator is still green, signaling a strong bull market. Bitcoin’s weekly candle closed at a higher high, confirming bullish continuation.
However, the RSI still shows potential bearish divergence — meaning momentum is cooling even as price rises. If the RSI breaks above its previous high, the divergence will be invalidated, confirming renewed strength.
On the three-day chart, a bullish MACD crossover has already been confirmed. Historically, these crossovers lead to several weeks of upward price movement. The signal suggests that despite temporary volatility, the overall momentum remains bullish.
Short-Term Bitcoin Price Trap Signals
The four-hour chart tells a different story. Bitcoin is forming short-term bearish divergence — higher highs in price but lower highs on the RSI. This often leads to a short cooling phase or sideways consolidation before another move higher.
The correction helps reset overbought conditions and shake out weak hands. But it also traps short sellers who enter positions expecting a crash, only to be liquidated when Bitcoin reverses upward again.
This current setup could be another Bitcoin price trap, creating an illusion of weakness before a stronger rally.
Bitcoin Trading Strategy and Risk Management
For traders, the best approach right now is caution with confidence. Keep existing long positions open but secure profits along the way. Move stop losses into profit zones to protect against sudden volatility.
If Bitcoin holds support near $117,000–$118,000 and reclaims strength above $121,000, it could retest resistance levels between $126,000 and $127,000. Those levels have been strong rejection zones but are also potential breakout points.
Ethereum, Solana, and Altcoin Movements
Ethereum has been trading between $3,900 and $4,800, maintaining a sideways range for several weeks. Support sits near $4,450, while resistance remains close to $4,850. Solana faces resistance at $230, with further resistance at $250. Both are following Bitcoin’s movements closely.
When Bitcoin dominance rises, altcoins tend to underperform. That’s exactly what we’re seeing now — a period where Bitcoin strength pulls liquidity out of smaller coins. Chainlink, for instance, has struggled to break $23, forming lower highs and continuing a short-term downtrend.
Institutional Accumulation and Long-Term Trend
While short-term corrections may continue, institutional accumulation is the key takeaway from this Bitcoin warning. Wall Street is not selling — it’s accumulating at every dip.
These inflows are a clear sign that long-term investors see Bitcoin as undervalued even at current prices. As ETF adoption grows, the total Bitcoin supply available on exchanges continues to fall, tightening liquidity and driving long-term price potential higher.
Final Thoughts on the Bitcoin Warning
This latest Bitcoin warning isn’t a signal to panic — it’s a reminder to think long-term. While retail traders react emotionally to short-term dips, institutions continue to buy strategically. The pullbacks we’re seeing are likely designed to trap short-term traders before the next move up.
As always, patience, discipline, and risk management are essential. The market may look shaky now, but strong hands are already preparing for the next breakout.
For real-time market data and Bitcoin ETF flow updates, visit CoinMarketCap’s Bitcoin page.