Bitcoin prices are currently caught between a support zone of $65,000-$70,000 and resistance at $79,000. Analysts at Glassnode noted a record number of short positions and a high likelihood of a short squeeze.
The price of the underlying asset has failed to hold above the true market average price ($79,000). As it approached this level, short-term investors began to lock in profits, with figures reaching $4 billion per hour. This absorbed buyer liquidity and halted the upward trend.
The key support level is the accumulation cluster in the $65,000 to $70,000 range. Losing this zone would worsen the short-term outlook for the leading cryptocurrency, experts warned.
The difference between buying and selling volumes in the spot market is returning to neutral levels. Selling pressure is decreasing, and institutional investors are gradually returning. The volume of assets in spot Bitcoin ETFs and open interest on the CME exchange are increasing after a prolonged period of outflows, specialists stated.
In the perpetual futures market, bearish sentiment prevails, with traders actively opening short positions. Experts believe this scenario is favorable for forced short liquidations with even a slight increase in spot demand.
Bitcoin's volatility is decreasing, and demand for price drop insurance has fallen. Options market participants are betting on a rise above $80,000. A breakout above this resistance would compel market makers to buy the asset to hedge risks. Until new capital enters the spot market, digital gold is expected to continue trading within a narrow range, Glassnode concluded.
Recall that on April 29, Bitcoin and many other crypto assets declined following the U.S. Federal Reserve's decision to maintain the current interest rate.