Bitcoin prices recently approached the $93,600 mark, with trading volume soaring by 39%, and market enthusiasm continues to heat up. However, alongside the hot trading, a liquidation of $187 million has also occurred. Is this market rally a rekindling of the bull market or a fleeting moment?

From the data, the significant increase in trading volume indicates that capital is indeed flowing in on a large scale. This usually means that both institutions and retail investors are actively positioning themselves. But the story behind this is not so simple— the $187 million liquidation scale shows that bulls and bears are engaged in fierce battles at the critical level of $95,000.

It is worth noting that this $95,000 resistance level has failed to be broken through 8 times in history. Each pullback serves as a reminder to market participants that breaking through key resistance is no easy task. Moreover, on-chain data shows that about 70% of the chips in this rebound come from leveraged funds. This means the market’s fragility is much higher than it appears—triggering stop-losses could cause a chain reaction.

Another factor not to be overlooked is the Federal Reserve’s policy stance. The balance sheet reduction has not yet fully materialized, and any policy shift could impact the market. In such an environment, even seemingly strong upward movements require caution.

For traders participating in this rally, the key is to recognize the situation: gains are substantial, but risks are also present. While protecting positions, they should also be prepared for sudden changes.