Bears Face Squeeze Risk as BTC Awaits Geopolitical, Fed Triggers
Bitcoin may be on the verge of a sharp upside move, according to Swissblock, with two upcoming catalysts acting as potential pressure-release valves: easing geopolitical tensions and the outcome of the Federal Reserve’s FOMC meeting this Wednesday.
Swissblock analysts highlight that a positive geopolitical headline could spark a rapid rally in BTC, targeting heavily shorted positions for liquidation. On the monetary front, if Fed Chair Jerome Powell strikes a dovish tone, it could provide additional fuel for the bulls, reinforcing upward momentum.
Negative Funding Points to Bear Overexposure
Current futures data shows Bitcoin’s perpetual funding rate has turned negative — a key signal that short positions are crowding in. This imbalance suggests that the market is leaning heavily bearish, which historically increases the odds of a short squeeze if sentiment flips.
Swissblock’s chart notes that bears have become overly exposed amid rising geopolitical risks. Should market sentiment shift, the setup could trigger a fast upward move as short traders scramble to cover.
Outlook: Waiting for a Narrative Shift
As BTC consolidates below key resistance levels, market participants are closely watching these macro variables. A dovish Fed or geopolitical de-escalation could serve as the catalyst needed to shift the narrative — and expose bearish traders to a volatile squeeze.
Kosta Gushterov
Reporter at Coindoo
Kosta joined the team in 2021 and quickly established himself with his thirst for knowledge, incredible dedication, and analytical thinking. He not only covers a wide range of current topics, but also writes excellent reviews, PR articles, and educational materials. His articles are also quoted by other news agencies.
