Bitcoin Forms V-Shaped Recovery Above $69,000
Bitcoin's price charged above $69,000 on Friday, marking a 4.61% increase driven by cooling U.S. inflation data. The move has traders optimistic about a short-term recovery, with price action on the four-hour chart forming a classic V-shaped recovery pattern. This technical formation suggests that the recent sell-off may have bottomed out, establishing a new base for an upward trend.
For the recovery to continue, bulls must overcome immediate resistance. The price is currently testing a critical zone defined by the 20-period EMA at $67,500 and the 200-week exponential moving average at $68,000. A decisive break above this zone would increase the probability of a rally toward the pattern's neckline at $72,000.
Short Liquidations Near $80K Signal Squeeze Potential
Exchange order book data provides further evidence of a potential upward move. According to CoinGlass, a significant cluster of short-seller liquidation orders is stacked between $77,000 and $80,000. This concentration of liquidity means that a price increase through these levels would force short sellers to close their positions by buying Bitcoin, adding further fuel to the rally.
This setup creates the conditions for a short squeeze. If bulls successfully push the price past the initial technical target of $72,000, it could trigger a cascade of liquidations, rapidly driving the price toward the next major liquidity wall near $80,000. Conversely, strong support is visible in bid orders down to $64,500. Should the $65,000-$66,000 support level fail to hold, the probability of a deeper correction would increase.
