Bitcoin Price Rebound Faces Challenges as Analysts Warn of Potential Bull Trap

Bitcoin's recent rebound is facing significant challenges as it approaches key resistance levels. A warning has been issued by onchain analytics platform CryptoQuant, citing structural weaknesses in the market.

The Coinbase Premium Index, which measures the difference in price between Coinbase and Binance pairs, has dipped into negative territory despite Bitcoin's six-week high. This suggests a lack of spot buying support, with new investors entering the market while OG investors are distributing their supply.

Furthermore, an open interest divergence is emerging on the 1-hour timeframe, with futures traders appearing reluctant to take on additional risk. If this trend continues, the current move could turn into a bull trap, potentially collapsing the market.