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 has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/bears-face-squeeze-risk-as-btc-awaits-geopolitical-fed-triggers/