Bitcoin has experienced two consecutive double-dip traps in recent months, as smart money cleverly sold billions of dollars without causing the market to crash immediately.
Behind the $123,000 and $124,000 peaks was a carefully calculated distribution strategy that left many investors in a state of FOMO. The important question now is: Is this the end of the cycle or just preparation for a new bull run and an explosive altcoin season?
When Bitcoin Peaks and Silent Distribution Happens
In his latest analysis, trader Anderson highlighted key points regarding Bitcoin (BTC) trading activity in July and August 2025.
July marked a milestone as Bitcoin crossed $123,000 for the first time, creating strong belief that the market was entering a new bull phase. However, almost immediately after, Galaxy Digital confirmed that a Satoshi-era wallet had sold more than 80,000 BTC, worth around $9 billion.
What's remarkable is that this massive sell-off barely shook the market, as liquidation peaked — there was enough demand to absorb the selling pressure. This is a classic example of how smart money distributes: using bullish sentiment and new money to quietly exit positions without causing a crash.
Bitcoin climbed to $124,000 in August, reinforcing that momentum was intact. However, contrary to expectations, buying power was not enough to sustain the breakout. Prices quickly destabilized, leaving late buyers stuck at the top.
“The August failure was a sign of the market: the breakout buyers were trapped, and the July selloff was not noise,” analyst Mr. Anderson noted on X.
This is the essence of the Bitcoin double trap: two consecutive peaks — one hidden by large-scale distribution, and one luring retail investors into FOMO — resulting in the realization that the market lacks real momentum.
Technical levels and what happens next
Attention now turns to key technical levels. $112,581 is the first Critical Closing Level (CCL). If bulls fail to defend it, a deeper correction towards $98,000 becomes increasingly likely. Conversely, if buyers can reclaim and hold above $116,891 (second CCL), Bitcoin could retest the $124,000 zone.
Rather than interpreting the July–August events as the end of a cycle, investors should recognize them as professional distributions within a broader market trajectory.
“This is not a reason to panic. But it is a reality check. If you are truly bullish, you should want Bitcoin to reassert dominance and climb through the CCLs,” Anderson Chia on X.
To restore structural strength, Bitcoin must hold above $112,000. A successful close above $112,581 and $116,891 would reopen the path to $124,000. The market could only build momentum for the next bull run, aiming for $148,000 and triggering a real altcoin season.
“Without this recovery, BTC risks stagnating and leaving only a shallow, scattered altcoin rotation,” Anderson Chia on X.
The recent Bitcoin double-dip trap shows that the crypto market remains a battleground of strategy and psychology. Smart money manipulates liquidation and psychology to shape expectations. Risk management must be a top priority for investors in an environment prone to such tactical scams.
At the time of writing, Bitcoin is trading at $112,540, down 0.4%.
