Technical analysis by PHundal about Symbol BTC: Buy recommendation (2/20/2025)

Bitcoin is currently trading green for the week, where it currently sits at US$96,700. The Bollinger bands are continuing to compress, indicating that the price range of which Bitcoin is trading is narrowing. Should we get a kick in volatility in the coming days, below are some potential outcomes. Sentiment in crypto markets have taken a hit in recent weeks, with the fear and greed index currently indicating market sentiment as fearful. Global exchange data from Coinglass suggests that if Bitcoin surges to US$100,000, up to $5 billion in short leveraged positions could be liquidated, triggering a potential short squeeze as traders rush to cover their positions. Bitcoin volatility has also dropped to its lowest point since August 2024. Bullish ScenarioPrice may head towards $102k which is the February monthly open; this could be fuelled by a short squeeze – based on what we know from the exchange data referenced earlier. Bearish ScenarioPrice failing to remain above the yearly open of circa $93k could result in a move back towards the January low of $89k.