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\n\t\t\t\t\t\t\t\t\tLower timeframes printing higher lows and higher highs is evidence that buyers are still engaged in the market.\t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n
On Tuesday, Bitcoin (BTC) hit $76,000 before falling back to around $74,000, and analyst Micha\u00ebl van de Poppe thinks the market is getting ready for something bigger.<\/p>\n
He argued in a post on X on Wednesday that low funding rates and rising open interest at resistance are the classic signs of a short squeeze, which could send BTC all the way up to $85,000\u2013$88,000.<\/p>\n
Van de Poppe built his argument<\/a> on derivatives data, not the price chart alone.<\/p>\n \u201cThe funding rate is negative,\u201d he wrote. \u201cThis means people are overleveraged short while we\u2019re attacking resistance.\u201d<\/p>\n<\/blockquote>\n When funding goes negative, short traders are paying long traders to hold their positions open, which is a sign that the bearish trade has gotten crowded.<\/p>\n On top of that, he noted open interest has climbed sharply over the past few days, meaning more capital has quietly stacked up on the short side right where BTC has been rejected before.<\/p>\n That, he argued, is a trap waiting to be sprung, and if the cryptocurrency pushes through $75,000, those short sellers have to buy back their positions to stop the bleeding, which adds fuel to the move rather than dampening it.<\/p>\n He acknowledged the first two tests of this level worked out for bears, with traders happy to sell into strength there. However, the third test is different:<\/p>\n \u201cThere\u2019s significantly greater potential for the markets to break higher now vs. the previous test, and if they do, it\u2019s very likely that $85-$88K is the next resistance zone to be tested.\u201d<\/p>\n<\/blockquote>\n Van de Poppe also pushed back on the \u201cshooting star\u201d candle that printed on the daily chart after the $76,000 rejection. While a lot of traders read the pattern as a bearish warning, the market watcher did not. According to him, lower timeframes are printing higher lows and higher highs, which tells him buyers are still engaged. As such, his floor is $72,000, and above that, he wants to be long, not short.<\/p>\n Trader George, posting around the same time, was less convinced. He\u00a0stated<\/a> that he would be staying in longs for now, but argued that no real breakout will happen until there\u2019s a weekly close above $74,000.<\/p>\n \u201cWe\u2019ve traded above on the LTF\u2019s but we haven\u2019t seen continuation or any HTF close above that level,\u201d he explained.<\/p>\n<\/blockquote>\n Without that, he says, this could just be another liquidity grab, a fake pump above the highs before the range reasserts itself. The weekly close, he wrote, is going to matter.<\/p>\n Bitcoin has been wrestling with $75,000 for weeks. The catalyst for this latest run came on April 14, when US Vice President JD Vance said<\/a> progress had been made in negotiations with Iran over the Strait of Hormuz. As CryptoPotato<\/em> reported, crypto markets added<\/a> around $100 billion in total capitalization within a single session.<\/p>\n The move extended<\/a> to roughly $76,000 on Tuesday before reversing, and the asset has since been grinding to hold $74,000.<\/p>\n LIMITED OFFER for CryptoPotato readers at Bybit: Use this link<\/a> to register and open a $500 FREE position on any coin!<\/b><\/p>\n<\/div>\n<\/div>\n\n
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