Yesterday I wrote that the market has a large number of open shorts on #BTC , especially in the 96,000–97,500 USD range. The market typically seeks to clear this liquidity — meaning triggering the stop-losses of short sellers.
We saw a fakeout to the downside yesterday, which invited more short positions — many traders were expecting a correction ahead of the upcoming FED decision. Today’s move upward is, in my view, not a sign of strength but a calculated short squeeze.
Once that excess short pressure is removed, I expect a sharp drop toward the 90,000–92,000 USD zone, where #Bitcoin will likely consolidate until May 7, when the Federal Reserve announces its interest rate decision. Only after that event do I anticipate a bullish breakout and continuation of the upward trend, especially if the Fed’s tone is dovish or neutral.
Why this scenario makes sense:
• Coinglass heatmaps show large short liquidation clusters above — a clear target before any drop.
• Positive funding and rising open interest suggest the price is being pushed up artificially before a correction.
• Market psychology: many traders shorted too early — this leads to a squeeze, followed by a strong drop that also takes out late longs entering out of FOMO.
• Historically, before key FOMC events, markets tend to consolidate lower due to uncertainty.
⸻
Summary:
This rally looks more like a short squeeze than real strength. I expect BTC to drop toward 90–92k and stay there until May 7. The real upside move may come only after the Fed decision.
⸻
Follow my profile to stay updated with my real-time observations, analyses, and market insights on #Bitcoin and more.
If you found this post helpful, feel free to like or comment — it motivates me to keep sharing live updates.