Bitcoin’s Tricky Dance: A Dip Before the Bounce?

Bitcoin wrapped up last week on a strong note, but some traders aren’t convinced the rally is straightforward. One name popping up in these conversations is KillaXBT, a crypto trader who’s been eyeing what he calls a potential “trap move.” The idea? Bitcoin might dip first—maybe sharply—before snapping back up. Or, just as likely, it could fake everyone out with a quick pump followed by a drop.

It’s the kind of volatility that keeps traders glued to their screens. And right now, all eyes are on that $117,000 zone.

Last Week’s Hints

Before this week even started, KillaXBT laid out two possible paths for Bitcoin. The first scenario had it opening strong, dipping near $116,000, and then bouncing higher. The second was a bit messier—a deeper fall to around $114,800 to “shake out” weaker positions before a sharp recovery.

As it turned out, Bitcoin did slide to roughly $115,000 last week, which lines up with the first idea. But here’s the catch: if it can’t hold above recent lows, things might get uglier. KillaXBT hasn’t ruled out a drop toward $112,000–$113,800. That possibility still lingers.

The $117K Magnet

That dip to $115,800 wasn’t random, at least according to KillaXBT. He sees it as a “liquidity hunt,” a move designed to trip up sellers before reversing course. Now, the spotlight’s on the CME gap around $117,316—a price level that often acts like a magnet, pulling Bitcoin back to “fill the gap.” Even if the price climbs temporarily, history suggests it might revisit this zone.

This Week’s Two Big “What Ifs”

So what’s next? KillaXBT’s latest thoughts boil down to two scenarios. The first: Bitcoin dips early this week, forms a higher low, and then rockets upward. That would catch late buyers off guard while setting the stage for a bigger rally.

The second? A fast run-up to $120,000–$121,000—only to collapse into a “bull trap.” The danger zone, he notes, is between $119,300 and $119,700. If Bitcoin gets rejected there, the fallback toward $117,000 could happen fast.

Right now, Bitcoin’s hovering around $118,909, up slightly in the past day. But if there’s one thing to take from KillaXBT’s analysis, it’s that Bitcoin rarely moves in a straight line. Whether it’s a fakeout dip or a fakeout rally, traders might want to buckle up.