Bitcoin has surged on the back of a textbook short squeeze, but now finds itself at a decisive resistance zone. Will it break out or roll over?
Bitcoin’s btc2.72%Bitcoin recent price action has caught many off guard, with a powerful bounce emerging from heavily oversold conditions. This rebound appears largely driven by a short squeeze, a phenomenon where overly bearish sentiment leads to a rapid price increase as short positions get liquidated. But now, BTC is trading in a technically sensitive area that could determine whether this bounce has more legs or if a reversal is imminent.
The rally began at a time when bearish sentiment was near its peak, with many traders heavily shorting BTC as it approached recent lows. This overcrowded positioning triggered a chain reaction, as price began to bounce, short positions were forced to cover, fueling an exaggerated upside move. This kind of short squeeze is often not sustainable unless it’s accompanied by real demand and fresh spot volume.
Now, Bitcoin is testing several key resistance levels in one cluster. The most important of these include the $98,300 level, the descending trendline that has defined recent price action, and the 0.618 Fibonacci retracement from the previous swing high.
This confluence zone is also aligned with the daily imbalance area and the point of control, making it a high-risk location for potential reversal.
A clean rejection here could confirm this rally as simply a short squeeze top, opening the door for another leg lower. However, if Bitcoin consolidates around this resistance zone and breaks above it with sustained volume, then the structure could shift into a genuine bullish continuation.
Adding to the concern, this rally has occurred during a period of thin liquidity and limited spot market interest. Without real demand behind the move, the sustainability of higher prices remains questionable. Smart money often fades these types of rallies unless they are confirmed with follow-through volume and clear support reclaim.
What to expect in the coming price action
All eyes should remain on the $98,300 level. A clear reclaim and close above this zone would flip resistance into support and suggest that bulls are taking control. Until then, traders should remain cautious, as failure here could send Bitcoin back toward lower support levels. Expect volatility and watch closely for a confirmed rejection or breakout.
Here’s why altcoins like Jasmy, Chainlink, Dogecoin, Pi Network are rising
Bitcoin and most altcoins started the month well, with the total market cap of all coins jumping to over $3 trillion.
JasmyCoin 
jasmy5.26%JasmyCoin price jumped by 6.2%, while Chainlink 
link5.2%Chainlink, Dogecoin 
doge5.8%Dogecoin, and Pi Network 
pi3.24%Pi Network were up by over 5%.
These tokens jumped as Bitcoin btc2.72%Bitcoin ended its two-week consolidation and broke above the key resistance level at $97,000 for the first time since February. Historically, altcoins tend to perform well when Bitcoin is rising.
Analysts are optimistic that Bitcoin will continue to soar. Ark Invest has estimated that the coin will reach $2.4 million by 2024, while Standard Chartered analysts predict it will surge to $120,000 by the end of the year. In an emailed statement to crypto.news, Joe Burnett, an analyst at Unchained, estimated that it could hit $250,000, saying:
Altcoins jumped as the US stock market soared
Altcoins also moved higher as the US stock market rallied. The Dow Jones, S&P 500, and Nasdaq 100 indices all rose by over 1%, continuing a rally that started a period of extreme selling pressure following President Trump’s “Liberation Day” tariff decleration.
These assets are rising as market participants predict that Donald Trump will intervene and begin unwinding tariffs following the latest US GDP data. The report showed that the economy contracted in the first quarter as imports surged.
Additionally, the stock market has underperformed compared to other presidents at the same time in their presidencies. His performance was the worst since 1974 when Gerald Ford became president. Therefore, he might decide to startnegotiations with China to boost the stock market.
The Federal Reserve may also intervene and start cutting interest rates to prevent a recession. The odds of a 25-basis-point cut in the June meeting on Polymarket have risen to 47% and are now higher than the odds of no change.
Bitcoin and altcoins like Jasmy, Chainlink, Dogecoin, and Pi Network often do well when the Federal Reserve is cutting interest rates. A good example is how they all surged during the pandemic and then slumped in 2022 as the bank started slashing interest rates.