Bitcoin surpassed the $70,000 mark on August 20, with the asset's growth exceeding 9% over 24 hours. According to crypto YouTuber Crypto Rover, this event can be called the largest short squeeze in market history—traders who bet on a decline were forced to close their positions amid a sharp price increase.
Breakout of Key Resistance
Analyst and trader Crypto Candy notes that after a prolonged consolidation, Bitcoin overcame all bearish barriers and closed above the previously marked resistance level of $66,000. According to her, the asset remained in a bearish zone as long as it stayed below this mark, but now the situation has changed: market sentiment has turned bullish. A short-term correction is not ruled out, but the overall scenario suggests a move first to $70,700, and then to $75,000. This forecast remains valid as long as the price stays above $65,000.
A similar view is held by crypto trader, analyst, and entrepreneur Michaël van de Poppe. He points out that the higher the market rises, the more likely it is that the bottom of the bear cycle has already been formed. Bitcoin has exited the range and transitioned into an uptrend, therefore, in his opinion, attention should be paid to pullbacks on lower timeframes as points for opening long positions, and he names the $73,600 level as the next target on higher timeframes.
Confirmation of Reversal on Weekly Chart
Trader Daan Crypto Trades draws attention to the formation of a bullish engulfing weekly candlestick for Bitcoin. He names the 200-day exponential moving average on the weekly chart and the bull market support band, located just above the current price, as the next significant levels. In his opinion, a weekly close above these levels will confirm a full-fledged trend reversal on the higher timeframe.
A more cautious position is taken by trader Roman. He admits he would like to see confirmation of a formed bottom for Bitcoin but draws attention to an important detail: the price increase on the weekly chart is accompanied by low trading volume and the potential formation of a bearish divergence. According to him, this does not rule out the possibility that the cycle minimum has already been passed, but it allows for a scenario where the market will renew the local minimum once more before finally turning upward.
AI Opinion
From the perspective of machine data analysis, the current rise of Bitcoin to $70,000 repeats the structure of events from five years ago. In the summer of 2021, the asset already experienced a similar short squeeze: then, the sum of short position liquidations exceeded $1 billion in one day, and the price bounced back almost 20% in a matter of hours. The parallel shows that sharp movements after prolonged consolidation often turn out to be short-term impulses rather than a sustainable trend reversal—the market often returns to testing previous lows after such surges.
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