Bitcoin’s 20% Bounce May Be a Bull Trap, Klinger Oscillator Warns

Bitcoin has rebounded nearly 20% after slipping close to $60,000 on February 6, but volume signals, on-chain data and price structure suggest the rally may be fragile. US demand indicators have started to recover, yet several warning patterns resemble setups that preceded major declines earlier in this cycle.

The Klinger Oscillator, which measures large-wallet volume intensity, showed a bearish divergence during the roughly 22% drop from about $126,000 to $97,800 between October 6 and January 14: the indicator rose while price weakened, then dropped sharply as bitcoin extended toward $60,000.

A similar pattern appeared between February 2 and February 9, with the Klinger climbing as price drifted lower, implying big players may be positioning to sell into rebounds. The decline formed a sharp pole and the current bounce resembles a bear flag — a pattern that often signals continuation and carries a near 40% crash possibility if the lower trendline gives way.

United States

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