Bitcoin Faces Crucial Resistance Test as Short Liquidation Cluster Grows

Bitcoin is testing an important resistance region as it extends its recovery from recent lows. The asset has regained short-term momentum, but still trades beneath the declining 100-day and 200-day moving averages.

The market continues to favor range-bound conditions, with Bitcoin trading within a well-defined consolidation range. A confirmed breakout above the $66.2K to $66.8K resistance would be a signal that buyers are regaining control and could pave the way toward the next resistance around $72K to $74K.

The 4-hour chart shows that buyers have staged a strong recovery from the $61.8K to $62.3K demand zone, pushing Bitcoin back into the immediate resistance area around $64.8K to $65.4K. A successful breakout above this region would likely open the door for another rally toward the daily resistance.

A significant concentration of short liquidation liquidity exists above the current price, particularly around the $66K region. If buyers manage to push through the nearby resistance, the liquidation of overleveraged short positions could trigger a short squeeze, accelerating bullish momentum.