Bitcoin Reclaims $64K as Macro Relief Triggers Short Squeeze Near $65K Resistance
Bitcoin escaped its tight range to push past $64,000 as falling US rate hike expectations and a weakening dollar injected macro liquidity into risk assets. Decreasing exchange inflows and lower open interest reduced selling pressure, though soft ETF flows leave spot support uncertain. Traders are now watching the key $65,000 resistance level to confirm whether this move evolves into a sustained rally.
Bitcoin broke out of its multi-day slump to surge past $64,000 on Monday, propelled by shifting US macroeconomic expectations. Traders rapidly pulled back bets on Federal Reserve tightening while a softening US dollar provided instant tailwinds for risk assets.
Declining exchange inflows signaled reduced spot selling pressure, allowing price action to move upward effortlessly. Meanwhile, cooling funding rates and lower open interest indicate that leveraged positions are far less overcrowded, clearing the path for short covering.
However, underlying metrics urge caution for aggressive buyers. Coinbase premium metrics remain negative and spot ETF flows recorded net outflows last week, showing institutional spot demand has yet to fully back this push.
All eyes are now fixed on the $65,000 level for clear directional confirmation. A decisive breakout above this mark could ignite fresh buying momentum, but failure to secure spot backing risks keeping this move framed as a temporary relief surge across derivatives.