Bitcoin Price News: BTC Bears May Get Squeezed If Rally Continues

Bitcoin (BTC) has gone up by more than 4% in the past 24 hours alone and recovered above the $90,000 threshold as market sentiment seems to be shifting.

Investors seem to have found some encouragement after a strong jobs report last week and following some dovish comments from the head of the NY Federal Reserve concerning the central bank’s interest rate decision.

The Federal Open Market Committee (FOMC) will convene for the last time this year on December 10. After the last meeting, the market revisited its projections for interest rates, and the odds of a rate cut next month dropped to 40% at some point.

This was the result of hawkish comments from the head of the Fed, Jerome Powell, who said that a rate cut was “far from certain” amid President Donald Trump’s decision to raise tariffs on Chinese goods again.

FedWatch’s Rate Cut Odds for December FOMC Meeting – Source: CME Group

However, according to data from FedWatch, the market has increased these odds of a rate cut to 85% right now following last week’s developments.

This is positive for rate-sensitive assets like Bitcoin (BTC), whose performance is heavily impacted by lower rates. A weaker dollar is also favorable for the top crypto, especially at a point when Wall Street’s appetite for digital assets seems to be increasing.

Extreme Fear Tends to Signal a Short-Term Bottom

A flood of altcoin-linked exchange-traded funds (ETFs) has hit the U.S. market in the past couple of weeks. The list of tokens that are now accessible to retail and institutional investors through regulated vehicles includes XRP, Solana (SOL), Dogecoin (DOGE), Litecoin (LTC), and more.

Net inflows to Bitcoin ETFs turned negative in the past few weeks as market sentiment soured. That wave of withdrawals seems to have taken a breather this week, possibly as BTC seems to have found strong support at $80,000.

Fear and Greed Index – Source: CoinMarketCap

In addition, extreme pessimism tends to be nature’s call for the smart money. In this regard, the Fear and Greed Index hit its lowest level on record this week as it hit 11. Earlier this year, this sentiment gauge hit 15 right before the market started to recover.

Bitcoin traded at around $80,000 back then as well, and went on to rise to $125,000 just a few months after. If this historical pattern repeats, BTC could close the year in positive territory.

Are Bitcoin Bears About to Get Squeezed?

BTC may have pulled a bear trap after breaking below a key resistance at $88,000, as the price recaptured the $90,000 shortly afterward.

BTC/USD Daily Chart (Bitstamp) – Source: TradingView

Short liquidations have been finishing the past 5 days above $100 million, and reached as much as $260 million on November 23 as bears are being squeezed out now.

The Relative Strength Index (RSI) has sent a buy signal after reaching 22 recently. This is an extremely oversold level that could anticipate an upcoming rebound for BTC. When the market gets out of hand like this, and selling pressure increases this much, bears are more exposed than ever, and market makers know it.

If the market flipped its positioning from extremely to extremely bearish right now, as most indicators seem to be telling us, guess who market makers are coming to get now?

Trading volumes have surged by 25% in the past 24 hours alone to $73 billion, accounting for 4% of BTC’s circulating market cap. If buying pressure pushes BTC decisively above $90,000, we could get some extreme upticks in the next few days that could help the top crypto recapture the $100,000 level in no time.