7.1 Evening Thoughts $BTC
The price of Bitcoin has tested the short-squeeze area around $108,800 twice, but has failed to trigger a large-scale short-covering trend. Meanwhile, the premium in the spot market continues to decline, indicating a tug-of-war between the long positions in the futures market and the short positions in the spot market during the recent two rounds of price fluctuations.
As the price pulls back to the lower end of the consolidation range, market focus shifts to the long position area below $106,000. If this key support level is breached, it may trigger a long liquidation mechanism, causing the Bitcoin price to further drop to $105,000, or even touch the $104,000 mark.
In terms of operational strategy, before the $106,000 support level is effectively broken, it is recommended to focus on buying the dips.