Bitcoin Nears $93K Again: Is a Squeeze on the Horizon?

Bitcoin has once again approached the $93,000 mark within a week, and new data on derivatives points to a possible high-volatility phase for the market.

Key Takeaways

Bitcoin is testing the $93K level for the second time in a week.
Large short-liquidation clusters are forming between $92.5K and $94K, indicating a potential market squeeze.
The daily Bollinger Bands show Bitcoin reclaiming the 20-day Simple Moving Average (SMA), signaling a possible trend reversal.
A decisive break above the $93K region could lead to significant upward momentum.

Bitcoin's market behavior shows that it has been rejected sharply at this price level last week, a sign that traders are increasingly wagering against further increases.

Bitcoin liquidation heatmap Source: Glassnode

The buildup of short-liquidation clusters suggests that if Bitcoin’s price continues to rise, it could trigger a series of forced buybacks from overly leveraged traders. These short-liquidation zones provide "fuel" to push the price higher, often without the need for new buying demand, driving some of Bitcoin's past rapid movements.

Bitcoin nearing $93K

Bitcoin's Technical Setup Supports the Rise

Adding to this bullish narrative, the daily Bollinger Bands chart indicates a strong setup. Bitcoin has successfully reclaimed the 20-day SMA, currently around $90.5K, a resistance it has struggled to overcome over the previous two weeks. Breaking above this level may suggest a reversal in the short-term trend.

The volatility in the market is also on the rise, with the Bollinger Bands expanding after a period of compression. This behavior tends to precede substantial price movements, and with the upper band near $97.9K, there is potential for Bitcoin to move higher if upward momentum accelerates.

Bitcoin price trend Source: TradingView

Today's bullish candlestick, which engulfed the previous multi-day trading range, reinforces the positive outlook. Additionally, the bounce back from the lower Bollinger Band at around $83K last week was significant, as buyers quickly absorbed the selling pressure, aligning with the heatmap’s lower-level long-liquidation zones. This reaction set the stage for the current rally towards the $90K–$93K range.

The Crucial $92K–$94K Zone

Traders closely watch the intersection of high-density short-liquidation clusters, increased volatility, and technical level reclaims. If Bitcoin can decisively break above the $93K mark, a swift price surge is likely as forced buying takes place.

However, it's important to note that this zone has previously proven to be a strong resistance level. A rejection at this point could indicate that sellers still consider it a significant barrier, potentially leading to another downturn.

Conclusion

As Bitcoin approaches the critical $93K mark once again, the formation of short-liquidation clusters and supportive technical indicators suggest that a squeeze may be forthcoming. Traders should remain vigilant as this development plays out, understanding that while the potential for upward momentum exists, the resistance at this level remains a crucial factor in Bitcoin’s short-term trajectory.