BTC Short Squeeze Nearing Limit Amid Bearish Divergence

The Bitcoin market is showing signs of overheating, with several consecutive days of short squeezes and a highly sensitive high zone. The bulls may continue to push prices higher using short squeezes, but the momentum is clearly overextended on lower timeframes.

On multiple timeframes, bearish divergence is apparent at the top, with some cycles showing stagnation for more than 14 hours. However, it's essential to distinguish between short-term overheating and a large-scale bullish structure reversal.

A breakout above 84K has been confirmed, but taking a heavy bearish position on a trend reversal carries significant risk due to the relatively high level of open interest in derivatives.