# Bitcoin’s $80K Rally Could Be a Trap Analyst predicts Bitcoin could drop to $45K. - **Source:** [CryptoPotato](https://brifing.si/source/bd22636b-ec8d-42a8-8cca-1937c50e0f6c) - **Published:** 2026-08-24 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/fbbc3607-7462-4b48-830a-aba3c9c26795 ## Bitcoin’s Recent Rally Bitcoin surged from below $60,000 to nearly $80,000 last week. However, analyst Nonzee argues that this move was driven by forced buying rather than genuine demand, calling it a trap. Nonzee believes the market is in a distribution phase rather than a new bull run. ## Impact of the Liquidity Squeeze During Bitcoin’s rally, $3.1 billion in short positions were liquidated, with $1.65 billion coming from Bitcoin alone. Nonzee claims the price increase was due to this liquidity squeeze rather than a shift in market sentiment. This suggests the market experienced a forced move. ## Catalysts Behind the Rally Nonzee ties Bitcoin’s rise to two catalysts: Trump bringing the CLARITY Act back into the spotlight and the Treasury Department increasing long-term bond buybacks. These events forced short positions to close and new long positions to open, despite an already tense market. ## The $70K Gap Closes The analyst notes that the fair value gap around $70,000 has been filled, and the short squeeze has completed. FOMO (Fear of Missing Out) buying is now occurring. Nonzee predicts distribution and selling will follow. ## Potential Downside Scenario Nonzee forecasts Bitcoin could drop from $77,000 to $67,000, then to $55,000, and eventually settle between $48,000 and $45,000. This indicates the market could face a significant correction. ## Bitcoin’s Current State Bitcoin is trading around $78,000 at the time of writing, up roughly 22% over the past week. However, it remains 39% below its all-time high of $126,000 set in October 2025 and is still down 33% on a one-year basis. ## Altcoins and Market Tension During Bitcoin’s rally, altcoins performed worse. ETH dropped 5%, and XRP fell over 6%. The Fear and Greed Index reached its highest level since last October’s crash, signaling market tension. ## The Market’s Future If Nonzee’s predictions hold, Bitcoin could experience a significant drop. However, the market is going through a volatile period in both directions. The slower pace of open interest growth compared to price movement suggests investors are cautious. ## Sources covering this story - https://cryptopotato.com/bitcoins-80k-rally-is-a-trap-analyst-warns-of-45k-drop/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._