Bitcoin Price Analysis: Short Squeeze Boosts BTC Price, Bulls Eye $8.5K

BTC buyers are attempting to reject the bearish rising wedge pattern right now, after a short squeeze on the Bitcoin futures market elevated the price beyond $8,300. Will bulls be able to maintain this momentum, or will the heavy selling pressure prove too much to handle? Let’s take a look.

Bitcoin Daily Chart  

On the BTC/USD daily chart we can see that the price is still constricting inside the rising wedge pattern that we identified in yesterday’s analysis. Surprisingly however, bullish traders were able to successfully close above the strong $8,200 resistance zone (red area) yesterday which was highlighted as a key historical level.

The unexpected break above this price point has subsequently caused a large short squeeze across the Bitcoin futures market, with Bitmex reporting a $13 Million short liquidation in the last hour alone – according to figures provided by Datamish.

This short squeeze is undoubtedly what’s driving Bitcoin’s price over the $8,300 level right now and closing the gap between the $8,400 above.  Looking at the depth of sell orders around the next bull target however, we can see that bear traders have already started loading up in anticipation of a sell-off (see