After hitting new local highs recently, bitcoin is at an inflection point, bringing the market into a cautious but optimistic mood. Despite the rise, analysts and investors remain cautious as btc has repeatedly fallen from these levels since March, raising concerns about another possible drop.
The question everyone is asking is whether bitcoin will be able to overcome this resistance or if history will repeat itself.
Key data shared by a top analyst reveals that many open positions on Binance are short, indicating bearish sentiment among traders. This has led to predictions of an imminent bitcoin crash, further fueling caution in the market.
However, some analysts argue that this could be a trap for bearish investors as the overwhelming amount of short positions could trigger a short squeeze if btc rises.
Will bearish sentiment prevail or will bitcoin defy expectations and continue its upward momentum? Investors are watching for signs that could tip the balance in favor of another rally.
bitcoin selling pressure
bitcoin is entering a decisive phase that will either disappoint or impress investors in the coming weeks. After a strong rally over the past two weeks, the bullish sentiment is now cooling as the price reaches a crucial resistance level, one that has sparked previous rejections.
Investors are nervous, wondering if btc will be able to break through or if a significant pullback is on the horizon.
The main analyst and investor Ali Martínez x.com/ali_charts/status/1847001507411251674″ target=”_blank” rel=”noopener nofollow”>shared key data in xrevealing that 58.23% of all bitcoin positions on Binance are short, indicating bearish sentiment.
Many traders expect bitcoin to face a rejection from the $70,000 level and anticipate a pullback, hoping to buy at lower prices. However, there is growing speculation that this bearish outlook could be a trap.
Historically, bitcoin has a habit of moving quickly, often without giving investors time to react. A strong rally could catch those expecting a drop off guard, especially if the price surpasses $70,000. If this were to happen, bearish positions could trigger a short squeeze, driving up the price and leaving stragglers scrambling to enter the market.
With such opposing views, the coming weeks will define bitcoin's path, leaving no middle ground for indecision. Investors should prepare for volatility.
Demand tests crucial supply
bitcoin is currently testing the most critical supply level of this cycle, a crucial moment in determining the strength of the next rally. Since October 10, the price has followed a clear upward trend, but is now starting to slow down around the $68,000 mark.
A rise above the $68,300 level is essential for the bulls to maintain momentum. Failure to overcome this resistance could change the bullish structure and increase volatility.
If btc successfully breaks above $68,300, it will reinforce the bullish narrative and set a target towards the previous all-time highs of around $73,000. However, profit taking and prevailing fear in the market could lead to a pullback, pushing the price back to lower demand levels near $63,000.
Traders and analysts are closely watching these key levels as the next price action will significantly influence sentiment and potential future earnings. The next few days will be crucial to establish whether btc can maintain its upward trajectory or face a corrective phase.
Featured image of Dall-E, TradingView chart
