Bitcoin has staged an aggressive recovery — but it’s not just any bounce. The move looks to be driven by a classic short squeeze, where extreme bearish sentiment and overcrowded short positions result in a sharp upward spike. This rally has now brought BTC right into a thick wall of resistance, and the next few candles could define the trend for weeks to come.
What’s Happening:
The short squeeze began after BTC reached heavily oversold levels. As price began to bounce, it forced short positions to unwind — fueling a momentum rally. But the rally hasn’t been supported by sustained demand; it’s been largely reactive. That’s where the caution comes in.
BTC is now sitting at a dense confluence of resistance, including
- The descending trendline from the broader channel
- The 0.618 Fibonacci retracement
- The point of control from the recent volume profile
- A major price level around $98,300
Why This Zone Matters:
Rejections from this area in the past have triggered sharp pullbacks. The fact that we haven’t seen immediate rejection yet raises eyebrows — but without strong volume and a decisive breakout, it’s premature to call this a full trend reversal. If the squeeze loses steam here, sellers could pile back in.
The Bullish Case:
If price grinds through this zone and closes above $98,300 with sustained volume, the landscape shifts. That level flips from resistance to support, potentially unlocking another leg higher.
The Bearish Case:
However, if this is just a squeeze without follow-through, expect a rejection to form soon. Watch for signs of slowing momentum, especially lower highs or sell pressure into resistance — classic signals of a local top forming.
Final Thoughts:
This is a make-or-break moment. The current structure is vulnerable to rapid moves in either direction. If BTC can’t hold this push, it may confirm a local high and set the stage for a deeper correction. But if bulls punch through resistance, momentum could snowball.
Stay cautious and let price confirm direction.
What’s Happening:
The short squeeze began after BTC reached heavily oversold levels. As price began to bounce, it forced short positions to unwind — fueling a momentum rally. But the rally hasn’t been supported by sustained demand; it’s been largely reactive. That’s where the caution comes in.
BTC is now sitting at a dense confluence of resistance, including
- The descending trendline from the broader channel
- The 0.618 Fibonacci retracement
- The point of control from the recent volume profile
- A major price level around $98,300
Why This Zone Matters:
Rejections from this area in the past have triggered sharp pullbacks. The fact that we haven’t seen immediate rejection yet raises eyebrows — but without strong volume and a decisive breakout, it’s premature to call this a full trend reversal. If the squeeze loses steam here, sellers could pile back in.
The Bullish Case:
If price grinds through this zone and closes above $98,300 with sustained volume, the landscape shifts. That level flips from resistance to support, potentially unlocking another leg higher.
The Bearish Case:
However, if this is just a squeeze without follow-through, expect a rejection to form soon. Watch for signs of slowing momentum, especially lower highs or sell pressure into resistance — classic signals of a local top forming.
Final Thoughts:
This is a make-or-break moment. The current structure is vulnerable to rapid moves in either direction. If BTC can’t hold this push, it may confirm a local high and set the stage for a deeper correction. But if bulls punch through resistance, momentum could snowball.
Stay cautious and let price confirm direction.
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Join the Free Trading Group
Telegram: t.me/freetradingden 🔥
Unlock Blofin Bonuses
Trade with perks & support the community!
partner.blofin.com/d/alchemisttrader 🎁
Stay sharp, trade smart.
— Team The Alchemist ⚔️
Telegram: t.me/freetradingden 🔥
Unlock Blofin Bonuses
Trade with perks & support the community!
partner.blofin.com/d/alchemisttrader 🎁
Stay sharp, trade smart.
— Team The Alchemist ⚔️
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.