Bitcoin (BTC) spent this past week ripping from the low $60,000s to just under $80,000, and to trader Nonzee, none of it looks like conviction.
They are calling the move a trap built on forced buying rather than real demand, and say the next leg is down, not up.
The Case for a Distribution Phase, Not a New Bull Run
Nonzee’s argument starts with the size of the squeeze, where more than $3.1 billion in short positions were wiped out during the run, and Bitcoin alone was responsible for roughly $1.65 billion of that figure. In their view, that is what actually pushed the price higher, not a change in sentiment.
“That was not a reversal. It was a liquidity squeeze,” they wrote.
The trader tied the timing to two catalysts: Trump putting the CLARITY Act back in the headlines and the Treasury Department increasing its long-term bond buybacks. Both, they argue, forced shorts out and pulled fresh longs into a market that was already stretched thin.
Their read on where things stand now is that the $70,000 fair value gap, a pricing gap left behind during an earlier fast move that traders watch for a return visit, has been filled, the short squeeze has run its course, and FOMO buying is happening in real time.
Next will come distribution, then the selloff, in their framing, with a downside path running from $77,000 to $67,000, then $55,000, before a final leg down to between $48,000 and $45,000.
Bitcoin was trading around $78,000 at the time of writing, up roughly 2% on the day and about 22% over the past week, according to CoinGecko. It has swung between $76,000 and $79,000 in the last 24 hours alone. Still, the OG crypto remains 39% below its all-time high of around $126,000, set back in October 2025, and it is still down 33% on a one-year basis despite the bounce.
A Choppy Few Days Either Way
Whether or not Nonzee’s call plays out, the past several days have already been rough on traders in both directions. BTC briefly touched almost $80,000 on Friday before slipping to around $75,500 over the weekend, as CryptoPotato reported, with the drop coinciding with reports that market maker Wintermute had built a sizable short position on Hyperliquid. During that stretch, altcoins fared worse, with ETH down 5% and XRP off by more than 6%.
The bounce also pushed the Fear and Greed Index to its highest reading since last October’s crash, a jump that has some drawing comparisons to the conditions right before that selloff wiped out billions in leveraged positions.
Elsewhere, HYPE printed a new all-time high above $82 even as BTC cooled off, and separately, data from analyst nocoffeenobrain shows open interest climbing from around $22 billion to nearly $25 billion during the rally, a slower pace than the move in price itself, which points to traders adding positions cautiously rather than piling on leverage all at once.
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