Analyst: A Bitcoin Short Squeeze Pattern Could Push Prices to a Breakout at $85k-$88k

Bitcoin’s price briefly hit a high of $76,000 on Tuesday, but then fell back to around $74,000. Although this rally couldn’t hold at the high, market dynamics have drawn analysts’ attention.

Analyst Michaël van de Poppe posted on X on Wednesday, saying that the current negative funding rates and the continually rising open interest near resistance levels are both typical signs of a short squeeze;

Based on this, van de Poppe predicts that these factors could drive Bitcoin’s price to surge significantly, with a target range of $85,000 to $88,000.

Judging from market performance, although the daily chart shows a “shooting star” pattern at $76,000—which is usually interpreted as a bearish signal—the higher lows and higher highs on shorter timeframes indicate that the buyer market is still active.

Therefore, he sets Bitcoin’s support level around $72,000; above this price level, he tends to go long. But if it successfully breaks through and holds above $75,000, the next resistance level is expected to be in the $85,000 to $88,000 range.

But almost at the same time, trader George takes a relatively cautious view. George believes that only if this week’s closing price is above $74,000 can a real breakout be confirmed;

He also warns that without confirmation from a weekly close, this could just be another liquidity grab, and the price may return to range-bound oscillation.

In terms of the market backdrop, the main driver behind this round of price gains is that on Tuesday this week, U.S. Vice President Vance said that progress had been made in negotiations between Iran and the U.S. over the issue of the Strait of Hormuz—this macro tailwind boosted the cryptocurrency market’s total market cap by about $100 billion in a single day.

In summary, although analysts still disagree on the short-term market outlook, the short squeeze pattern, the macro tailwind, and technical support create conditions for an upward move.

As for how the market will move next, it’s still important to focus on whether this week’s closing price can break through and hold above the key resistance level of $75,000, using that as an important reference for judging the market trend.

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