Bitcoin experienced a quiet weekend following last week’s extreme volatility, with its bounce from $60k reaching a local high of $72.1k. The price continued to hover above $70k despite having swept nearby liquidation clusters, leading to speculation of a potential extended short squeeze. Analysts noted heavy sell pressure from retail investors in recent weeks.
Bitcoin’s price had a quiet weekend after showing extreme volatility last week. Its bounce from $60k reached a local high of $72.1k on Sunday.
The usual late-Sunday volatility did not arrive this time. The New York trading session on Monday could spark Bitcoin’s next short-term impulse move.
Traders can wait for a rejection from the $72k-$74k local supply zone or an acceptance above it. The 4-hour chart showed Bitcoin’s price was still in a bearish trend.
The $71.9k and $75.1k levels were the 61.8% and 78.6% retracement levels from the earlier bearish swing. The MACD was approaching the zero line and could soon form a bullish crossover.
However, the OBV was unable to climb toward recent highs. This indicated the bounce occurred on relatively low trading volume compared to the downward move.
A liquidation heatmap from CoinGlass showed clusters around $72k were cleared. The price hovering above $70k was seen as suspicious and hinted at potential for an engineered short squeeze.
In this scenario, Bitcoin could rally to $80k to hunt down overhead short liquidations. This would occur before potentially resuming its higher timeframe downtrend.
Retail panic appeared to be driving recent sell pressure. Data from CryptoQuant showed small Bitcoin holders are usually reactive to price moves.
The shrimp category of holders exhibited increased exchange inflows after the October price crash. Analyst Darkfost pointed out the drop over the past three weeks also brought heavy inflows to Binance.
Buy or sell pressure from this market segment does not dictate price direction. It was interesting to note retail sentiment was extremely bearish in recent days.
This segment has also been largely sidelined during the price advance in 2025. Their inactivity contrasted with behavior observed in previous cycles.
