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Bitcoin Key Support and Resistance Levels, Short Squeeze Incoming?
The support level - $92,739.3 has been tested already, price action is likely to form a base here on the lower time frames before a local bounce, this will initiate a short squeeze type of price action.
Bitcoin Insider
January 08, 2025 • Estimated Reading Time: 3 minutes
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Today’s report will include:
Updated Technical Analysis
Other key market developments
Market Psychology
Trading Tools
Bitcoin Support is holding 📈
In Today’s analysis -Bitcoin- having a strong correction over the last 24 hours, now trading at a critical support level that needs to hold for a bounce into the .618 Fibonacci resistance.
Points to consider,
Key high time frame support
Local .618 Fibonacci tested
Oversold conditions.
The support level - $92,739.3 has been tested already, price action is likely to form a base here on the lower time frames before a local bounce, this will initiate a short squeeze type of price action.
A short squeeze happens when price rises, forcing short sellers to buy back into Bitcoin to cover losses. This buying pressure further increases the price, creating a feedback loop:
Short Selling: Traders sell borrowed Bitcoin , betting the price will drop.
Trigger: Good news or market sentiment shifts the price upward, support levels hold.
Short Covering: To cut losses, short sellers buy back shares, driving the price higher.
End: It stops when most shorts are covered or the price stabilizes.
This can cause a dramatic impulse in the immediate short term on Bitcoin as price is in oversold conditions.The next logical objective will be the .618 Fibonacci resistance around the $98,900 mark.
Hope this analysis helps.
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The Bitcoin 4 years cycle is still exactly in play.
This means we will see one more year of bullish price action.
— Mister Crypto (@misterrcrypto)
3:38 PM • Jan 3, 2025
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