Bitcoin suggests 'brutal' short squeeze as sellers defend $108,000
Current scenario: BTC lost 1.1% on the day, dropping to around $107,000 after the market opened on Wall Street on June 30, as the monthly and quarterly close approaches, pressuring the market for volatility.
Liquidity booming: Buy and sell orders in the order book are accumulating. QCP Capital noted that the funding rates for perpetual contracts have turned positive, indicating that investors are increasingly inclined to long positions as BTC approaches $108,000.
Traps for shorts: The analysis account TheKingisher highlighted a strong liquidation 'wall' of short positions between $108,000 and $108,500. If the price exceeds $107,500, there is potential for an intense short squeeze.
Technical resistance: Trader Rekt Capital pointed out that BTC is testing a long-term resistance line, formed since May. Sustaining above the 'green zone' of support would allow for an attempt to break this bearish trend.
Macroeconomic catalysts: The market is excited about the possibility of replacing Fed Chairman Jerome Powell. The expectation of a drastic interest rate cut (up to 1%) in case of a new appointment could trigger a strong rally in risk assets, including stocks and cryptocurrencies.
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Conclusion: Bitcoin is at a critical point, with high accumulated liquidity and a strong risk of short squeeze if it surpasses $107,500–$108,000. Additionally, the macro context—with possible new monetary policy in the U.S.—adds a bullish bias to the scenario.
