Bitcoin (BTC) is nearing a critical support retest as traders increase bullish bets ahead of the weekly candle close. Data from Cointelegraph Markets Pro and TradingView highlights growing volatility and signals a possible significant short squeeze.
BTCUSD held near $105,500 toward the June 8 weekly close, recovering from a dip to $100,500 on June 5. The rebound has encouraged traders to anticipate a continuation of the bull trend.
Analyst Rekt Capital noted that Bitcoin is showing signs of breaking a two-week downtrend and establishing it as new support. He emphasized that a daily close above $106,600 would strengthen the bullish outlook.
BTC’s daily close above its 10-day simple moving average (SMA) is regarded as a key indicator for invalidating bearish scenarios. However, traders caution that Bitcoin must sustain levels above the 10 SMA and the head-and-shoulders neckline on a closing basis before increased long positions are advisable.
Trader Cas Abbe examined order book liquidity and identified clusters above and below the current price, suggesting a “magnet” move is imminent. He highlighted that a 10% price increase could trigger $15.11 billion in short liquidations, while a 10% drop may liquidate $9.58 billion in long positions. Abbe also pointed to negative funding rates indicating large short positions building over the weekend and predicted a possible push above $109,000 to $110,000.
Some traders expect further support retests before a decisive move. CrypNuevo identified the $100,000 mark as the strongest psychological support and a favorable level to enter longs with clear invalidation points below. Rekt Capital described the recent support retest following May’s all-time highs as “successful” and questioned whether Bitcoin could close above $104,400 for the fourth consecutive week.
This article does not contain investment advice or recommendations. All trading involves risk, and readers should perform their own research when making decisions.