Bitcoin (BTC) continued its ascent towards ten-week highs on Tuesday, as market sentiment shifted towards anticipation of a potential short squeeze. Analysts observed that despite the upward trend, funding rates remained decidedly negative, a phenomenon that could set the stage for a significant price surge.
Market experts have identified short-term targets for Bitcoin that include a rise to around $85,000 within a few weeks. However, they emphasized that for this upward trajectory to materialize, Bitcoin must first overcome the formidable resistance posed by the 21-week trend line, which has kept prices subdued since October 2025.
Data from TradingView indicated that Bitcoin approached the $77,000 mark for the first time this weekly candle. A slight dip in price coincided with the opening of Wall Street, which left Bitcoin trading within a narrow range beneath a substantial resistance level. This situation evolved against a backdrop of mixed signals regarding the ongoing US-Iran conflict, with Iran refuting claims that its delegations were in Pakistan for negotiations, leading to only muted market reactions to the latest developments concerning the Strait of Hormuz oil route.
Despite the broader geopolitical tensions, Bitcoin traders expressed a sense of cautious optimism. Crypto trader Michaël van de Poppe described the current market conditions on social media as a “period of consolidation,” suggesting an upward trend and a likely journey towards the $85,000 target within a time frame of “two to three weeks.” He reiterated the ongoing correlation between Bitcoin and the Nasdaq.
Other traders noted the enduring negative funding rates on exchanges, a situation they argue is unusual given the price’s upward movement. One trader, Osemka, highlighted that negative funding rates have historically coincided with local market bottoms. He speculated that the market might be on the brink of significant movement as Bitcoin aimed to reclaim previously lost support.
The market intelligence platform Decode reinforced this view, suggesting that the current market conditions—characterized by heavy short positions—create a ripe environment for a short squeeze. “The cannon is loaded; bulls just need to light the fuse,” they commented, hinting at the potential explosive move if conditions align.
As Bitcoin faced resistance, several technical indicators were scrutinized by traders. The 21-week exponential moving average and the average buy-in price for U.S. spot Bitcoin exchange-traded funds (ETFs) represented critical barriers that bulls would need to navigate in order to achieve upward momentum. One trader, Daan Crypto Trades, pointed out that the price had nearly filled a significant gap in the CME Group’s Bitcoin futures market, urging caution as the market remained influenced by external headlines with no immediate catalysts on the horizon for substantial price increases.
Overall, market observers remain vigilant, monitoring key levels of resistance as they speculate on Bitcoin’s potential to initiate a significant short squeeze in the coming days.
