Bitcoin Price Faces Key Resistance Ahead of Monthly and Quarterly Close
As Bitcoin (BTC) approaches the critical monthly and quarterly candle closes, market volatility is rising. On June 30, BTC briefly touched $108K before retracing slightly, trading around $107,513 at the time of writing. This price movement occurs amid a surge in leveraged long positions and an increasingly tight liquidity battle between bulls and bears.
Order book data across exchanges shows a buildup of long liquidation zones between $106K–$107K, while short positions face liquidation just above $108K, suggesting that a short squeeze could be imminent if Bitcoin breaks higher.
Short Liquidations Loom Around $108.5K: A Magnet for BTC Price Action
According to TheKingfisher, a well-known market analyst, the BTC price is surfing into a magnet zone, with heavy short liquidations just above current levels.
“That’s a strong magnet. Short squeezes can be brutal if price pushes through 107.5K,” said the analyst, citing cross-exchange liquidity data.
This potential short squeeze is further fueled by rising funding rates across perpetual futures markets, indicating that traders are leaning into bullish bets as the quarter ends.
BTC Retests Local Support as It Battles Main Downtrend
Rekt Capital, a popular crypto analyst, noted that BTC/USD is currently retesting a key local support zone, which it previously launched from. If Bitcoin maintains stability above this region, it could set the stage for a retest of the major downtrend line that has been in place since late May.
“Continued stability here would enable another challenge of the Main Downtrend dating back to late May,” he stated.
This technical resistance zone must be cleared for BTC to enter price discovery territory and potentially break above its all-time high.
Macroeconomic Tailwinds: Fed Chair Replacement Fuels Risk-On Sentiment
Adding to the bullish momentum is the news that Federal Reserve Chair Jerome Powell may be replaced, potentially ushering in aggressive interest rate cuts. Former President Donald Trump has proposed slashing rates from 4.25% to 1%, a move that could trigger a major rally in stocks, real estate, and cryptocurrencies.
“If the new Fed Chair actually cuts rates to 1%, we are going to witness perhaps one of the biggest runs of all time,” predicted The Kobeissi Letter.
Additionally, Ric Edelman, founder of a $300 billion financial advisory firm, has recommended a 40% crypto allocation, reinforcing the narrative that institutional demand for digital assets is surging.
Bitcoin at a Crucial Breakout Point
With liquidity pressures mounting, leveraged positions rising, and macroeconomic catalysts unfolding, Bitcoin is on the brink of a potentially explosive short squeeze. A clean breakout above $108.5K could invalidate the short thesis and push BTC into a new bullish phase.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.