After recently hitting new local highs, Bitcoin finds itself at a turning point, pushing the market into a cautious but optimistic mood. Despite this rise, analysts and investors remain cautious as BTC has repeatedly fallen from these levels since March, raising concerns about a potential further decline.
The question on everyone’s mind is whether Bitcoin will be able to break this resistance or whether history will repeat itself.
Key data shared by a leading analyst reveals that many open positions on Binance are short positions, signaling bearish sentiment among traders. This led to predictions of an imminent decline in Bitcoin, further fueling market caution.
However, some analysts say this could be a trap for bearish investors, as the overwhelming number 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 closely watching for signs that could tip the scales in favor of a new 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, bullish sentiment has now cooled as price reaches a crucial resistance level, one that triggered previous rejections.
Investors are nervous and wondering if BTC can break through or if a major pullback is on the horizon.
Prominent analyst and investor Ali Martinez shared key data on X, revealing that 58.23% of all Bitcoin positions on Binance are short, signaling bearish sentiment.
Many traders expect Bitcoin to be rejected from the $70,000 level and anticipate a retracement, 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 surprise those expecting a decline, especially if the price rises above $70,000. If this happens, bearish positions could trigger a short squeeze, increasing the price and forcing laggards to rush 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 testing, crucial supply
Bitcoin is currently testing the most critical supply level of this cycle, a crucial moment in determining the strength of the upcoming rally. Since October 10, the price has been in a clear uptrend, but is now starting to slow down around the $68,000 mark.
A rise beyond the $68,300 level is essential for bulls to maintain momentum. Failure to cross this resistance could change the bullish structure and increase volatility.
If BTC manages to surpass $68,300, it will strengthen the bullish narrative and set a target towards previous all-time highs of around $73,000. However, profit-taking and prevailing market fears could lead to a pullback, pushing the price to lower demand levels near $63,000.
Traders and analysts are closely monitoring these key levels, as upcoming price action will significantly influence sentiment and potential future gains. The next few days will be crucial in determining whether BTC can maintain its upward trajectory or face a corrective phase.
Featured image of Dall-E, chart by TradingView
