Bitcoin Market Enters A New Phase of Disbelief: Short Bias Dominates Despite Signs Of Recovery
Bitcoin is exhibiting indicators of restoration after enduring weeks of promoting strain that culminated in a pointy flash crash on October 10, when the worth briefly dipped to round $103,000. Since then, BTC has rebounded modestly, now testing resistance close to $111,000, a zone the place sellers have traditionally stepped in. Despite the bounce, market sentiment stays fragile, with merchants hesitant to name a transparent backside.
According to high analyst Darkfost, Bitcoin could also be coming into a brand new part of disbelief — a stage usually seen on the finish of main corrections, when traders wrestle to belief any signal of restoration. This shift is turning into more and more evident within the derivatives market, notably by means of funding charges, which replicate dealer positioning and market bias.
On Binance, which nonetheless dominates world futures buying and selling quantity, funding charges have remained destructive for six of the previous seven days, presently sitting round -0.004%. This sustained bearish bias means that brief positions proceed to outweigh longs, as merchants stay cautious after the latest liquidation wave. Historically, such persistent disbelief and brief dominance have usually preceded robust brief squeezes or reduction rallies.
Disbelief Could Set The Stage for The Next Big Rally
According to Darkfost, the present part of disbelief may paradoxically turn out to be the muse for Bitcoin’s subsequent main rally. When merchants stay overly bearish regardless of early signs of restoration, the buildup of brief positions can create a setup for a robust brief squeeze. In such situations, even a modest upward transfer can drive brief sellers to cowl their positions, accelerating shopping for strain and fueling a fast worth breakout.
If the present uptrend continues to construct momentum, this wave of liquidations may push Bitcoin sharply greater. Darkfost factors to key liquidity zones round $113,000 and $126,000, each areas the place important brief positions are presently concentrated. As these positions unwind, BTC may see a series response of compelled shopping for — a dynamic that has traditionally triggered explosive strikes.
Similar patterns have unfolded earlier than. In September 2024, Bitcoin fell to $54,000 earlier than rebounding above $100,000 for the primary time, fueled by a large-scale brief squeeze. Again, in April 2025, BTC surged from $85,000 to $111,000, and ultimately to $123,000, following the identical construction.
Darkfost suggests the market may now be coming into one other such part of disbelief, the place widespread skepticism masks underlying energy. If historical past rhymes, this doubt-driven setting could as soon as once more remodel concern into momentum — setting the stage for Bitcoin’s subsequent main transfer greater.
Bitcoin Finds Short-Term Support, Eyes $113K Resistance
Bitcoin is exhibiting indicators of stabilization after a risky week, rebounding from its latest low close to $106,000 to commerce round $111,200. The chart reveals BTC reclaiming short-term momentum, with patrons stepping in close to the 200-day shifting common (crimson line), a key long-term help zone that has traditionally marked accumulation phases throughout corrections.
However, BTC now faces a big check forward. The 50-day (blue) and 100-day (inexperienced) shifting averages are converging close to $114,000–$115,000, making a dense resistance cluster. A profitable breakout above this area would sign renewed energy and doubtlessly open the trail towards $117,500, the following main liquidity space and psychological barrier for bulls.
On the draw back, failure to carry above $110,000 may expose BTC to renewed promoting strain, doubtlessly retesting $106,000 and even the $103,000 degree reached throughout the October 10 flash crash. The present construction means that the market continues to be in a restoration and disbelief part, the place merchants stay cautious regardless of bettering worth motion.
For now, the important thing focus is on whether or not BTC can maintain momentum above the 200-day shifting common. A confirmed every day shut above $113,000 would strengthen bullish confidence and validate the beginning of a possible short-term reversal.
Featured picture from ChatGPT, chart from TradingView.com
