Bitcoin Rallying to $72k-$76k will be a Major Bull Trap as Institutions Will Look to Sell into Strength ⋆ ZyCrypto

Any Bitcoin move till $76k will be a major bull trap, according to an analyst on X. The largest cryptocurrency by market capitalization is currently trading within a narrow range below $70k, but there is growing sentiment that it might head above to liquidate a range of shorts currently piled up between $72k-$80k.

According to the SherlockWhale, the X researcher in question, Bitcoin is likely to reach levels above $75k, but it will be a kill zone, not a major buying opportunity, so buyers need to be cautious.

In a lengthy tweet, Sherlock posted:

To summarize, any price move around this ballpark will be a selling opportunity for several large whales looking to cut down their losses. They include Strategy, most of the spot ETFs, and many retail investors who splurged during Q4 2025 in anticipation of a major price boom. The bull run didn’t happen, and the market was thrust into an early bear market, wiping out hundreds of billions in value and casting a cloud over the proceedings.

Strategy, Spot ETFs Under Focus

Strategy’s current average buying price is hovering around $76k, and that, for SherlockWhale, is the upper limit to target, as the price index is likely to face significant selling pressure. He argues that it is a classic bull trap in which investors are caught on the wrong side of the market, similar to what happened last month when the index rose close to $98k but suffered a major 25% crash immediately. 

However, Strategy is doubling down on its Bitcoin buying spree and has recently made another substantial purchase for its reserve. Its total BTC holdings now stand at 717,131 BTC with an average price of $67,710. The firm, led by Michael Saylor, has not indicated that it is ready to start selling even a little bit, let alone offload billions that will disrupt the market as SherlockWhale anticipates.

The same applies to all major spot Bitcoin ETFs, which collectively hold $85.52 billion in crypto. Their average purchase price, as estimated by SherlockWhale, is approximately $84,000, which is above the $76k level cited by the analyst, so they might offload some at this figure, but not much.

The Future

Bitcoin’s 40% price drop from its ATH indicates exhaustion, and many analysts are citing the “realized” price of $55K as a potential bottom for the cryptocurrency.

The current situation signals structural weakness and potential for further consolidation below key supports unless ETF inflows resume.