Analyst: Deepening BTC supply imbalance raises bull trap risk

The recent supply-demand imbalance in Bitcoin is worsening, according to an analysis by Mignolet, a CoinNess Content Creator (CC) and crypto analyst. He noted that this trend differs from previous instances where the imbalance gradually eased after a market downturn, and instead resembles the pattern observed when BTC was in the $80,000 to $90,000 range. While some indicators suggest a potential bottom is forming, Mignolet believes there is not yet enough market liquidity to drive a genuine trend reversal. He added that although a short-term price rebound could stimulate investor sentiment, it is likely to result in a bull trap.