Bitcoin price struggles to surpass $76K amid warnings of potential bull trap
March 18, 2026
Bitcoin’s recent price action saw it struggling to maintain a break above the $76,000 level, sparking concerns among analysts about a potential bull trap in the making amidst significant overhead resistance. This marks a pivotal moment as the market transitions from spot-led strength to a derivatives-driven move, raising alarms about the structural vulnerability within the cryptocurrency space.
A CryptoQuant contributor known as Easy On Chain highlighted the waning spot demand by pointing out the negative Coinbase Premium Index even as Bitcoin reached six-week highs. This divergence indicates that the US spot demand is failing to keep up with market trends, exposing a scenario where smart money is tactically reallocating its supply to navigate the shifting landscape.
Moreover, onchain data paints a concerning picture of longer-term holders distributing their holdings while newer entrants step in to take their place. MAC_D, another CryptoQuant analyst, underscored the caution with a noteworthy divergence on the 1-hour timeframe. As prices climbed, futures traders remained hesitant to increase their positions, suggesting a lack of bullish sentiment that could potentially transform the current uptrend into a bearish trap.
Technical indicators further confirm the precarious situation as Bitcoin faltered near the $76,000 level before retracing, indicating a struggle between bulls and bears. Keith Alan from Material Indicators emphasized the significance of flipping resistance at $75,000 and pinpointed potential upside targets at $78,300 and $82,500 if the price manages to break through. However, Alan warned about the formidable ask liquidity lined up between current levels and the targeted price points, posing a significant challenge for Bitcoin’s upward momentum.
In a separate analysis, trader Mister Crypto drew parallels to a bear flag formation, warning followers about a potential downturn in Bitcoin’s trajectory. His cautionary message echoes the sentiment of the wider market, hinting at the looming threat of a correction amidst the uncertain price dynamics.
As Bitcoin struggles to navigate key resistance levels and faces mounting pressure from market participants, the prevailing sentiment suggests a cautious outlook as the cryptocurrency teeters on the brink of a possible downturn. With conflicting signals from varying indicators, traders and investors brace themselves for what could unfold as a defining moment in Bitcoin’s price trajectory.
