- Bitcoin reclaimed $106k, establishing a possible squeeze as shorts dominate Binance perp positioning.
- Will bulls lastly break the cycle, or is one other macro-driven rejection looming?
Bitcoin [BTC] kicked off the week by reclaiming $106k, squeezing late shorts after final week’s 7% flush cleared out extra leverage.
However this isn’t a brand new sample. Since mid-Might, BTC’s 1D chart has proven a recurring construction the place sharp liquidity sweeps set off strong dips, attract worth hunters, after which face macro-driven FUD that erases weekly beneficial properties and resets the development.
Will this time be completely different? Can Bitcoin lastly escape of this volatility lure and set up a transparent directional bias, or is it establishing for one more rinse and repeat? How Bitcoin resolves this setup might dictate its subsequent leg.
Bitcoin’s fourth try at directional readability
At press time, Bitcoin posted a 1.31% intraday leap, not simply reclaiming $106k however extending its wick to $107,263.
Extra critically, Binance’s order book is exhibiting almost 60% of BTC/USDT perp merchants skewed brief, constructing a transparent liquidity pocket above.
Bulls have the setup laid out, however till they punch it via, BTC’s caught on this high-leverage chop zone. If a squeeze kicks off, $110k is the extent to observe, marking the fourth try to interrupt into worth discovery.
To this point, although, every breakout has been short-lived, with macro jitters dragging issues again simply earlier than the construction can verify.
Supply: TradingView (BTC/USDT)
That stated, the chances of one other volatility seize are even increased.
With two days left till the FOMC, markets are leaning towards a charge pause, backed by Might’s softer information prints. However recent geopolitical threat now complicates that setup.
Battle between two main oil-producing nations has reignited inflation concerns, including strain to threat belongings. Bitcoin wasn’t spared. It took a 7% hit final week, retracing again to $102k.
Technically talking, BTC’s present push again to $106k is unfolding throughout the identical structural sample that preceded the final three failed breakout makes an attempt.
Consequently, weakening the chances for bulls to interrupt the cycle and push Bitcoin into worth discovery towards a brand new all-time excessive.
