The post Bitcoin short squeeze rally meets heavy resistance: what comes next? appeared on BitcoinEthereumNews.com.

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 (BTC) 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. Key technical points Resistance Zone: $98,300 level, 0.618 Fibonacci, and descending channel resistance. Volume Profile: Price is challenging the point of control. Trend Context: Current move driven by a short squeeze with no real rejection — yet. BTCUSDT (4H) Chart Source: TradingView 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…

---

Filed under: News - @ May 1, 2025 9:23 pm