Bitcoin’s ’Pronounced Squeeze’ – Is the Fake Breakout Finally Clearing?

Bitcoin's price action just hit a critical inflection point—again. The 'pronounced squeeze' on the chart has traders debating whether this is the real deal or another head-fake.

Market manipulators love a good fakeout, and BTC's recent volatility suggests the usual suspects are at work. But technicals hint this squeeze might finally resolve with conviction.

Will the breakout hold? Or is this just another trap for overleveraged degens? Either way—stay sharp. The only thing predictable in crypto is the fees you'll pay for being wrong.

A pronounced squeeze on Bitcoin is beginning to shape the conversation in crypto circles.

As a compliment, prominent analyst Michaël van de Poppe highlighted what could be a setup for a surge or a trader trap.

This follows the close of the FOMC meeting, after which no major policy change emerged, leaving room for technicals to hint at the next market direction.

The Pronounced Bitcoin Squeeze and Why it Matters Now

Crypto market analyst Axel Adler Jr. shared a post showing a tight squeeze pattern building on the bitcoin chart.

According to his analysis, this formation often signifies a strong MOVE ahead. If momentum holds, he believes the price might shoot toward $106,000.

However, the same squeeze could also turn into a fake breakout, a scenario he warned about with a clear red zone on the chart. That area signals trouble if the price fails to stay above key levels.

The squeeze comes just after the U.S. Federal Reserve’s FOMC meeting ended without any fresh policy updates.

That calm pushed traders back to the charts, hoping for bullish direction. Some expected altcoins to lead the next push, but crypto stakeholders’ confidence is split.

A trader known as CryptoD1v3r argued that altcoins are dropping, not climbing. If this holds, the pressure could fall back on Bitcoin.

Some reports also support the squeeze theory, noting that when shorts get squeezed, prices can climb fast, though the swings can be sharp.

Last week, Bitcoin fell 5.5% after tension in the Middle East spooked markets. That kind of drop shows how fragile the market’s risk is currently.

MicroStrategy, a company closely tied to Bitcoin, also reflects this movement as its stock often mirrors Bitcoin’s wild ride.

Bitcoin outlook after FOMC silence

With the FOMC’s stance regarding interest rates now far behind, Bitcoin trading is looking to return to its usual rhythm. Michael van de Poppe sees a likely test of $106,000 coming up.

This is based on earlier trends where Bitcoin typically rises around 5% within a day of FOMC decisions.

However, not everything favors a clean breakout. Microsoft’s recent job cuts, tied to AI restructuring, hint at a cautious mood among investors.

Market risk appetite is thin, even though some market participants believe that Bitcoin’s rise to market dominance sounds good. This means altcoins are fading, which is not helping the rally.

van de Poppe’s chart also shows a green zone that could support a further upward move.

Still, that red zone remains a warning. The price must hold firm, or it risks a fast pullback.

What Traders Should Watch in the Coming Days

The pronounced squeeze on Bitcoin has set the stage, but what happens next depends on real-time sentiment.

If volume picks up and the momentum is sustained, $106,000 could be the immediate breakout point.

If not, Bitcoin may slide back to $102,800, as flagged on TradingView data. As of now, Bitcoin price was trading at $104,164.92, down by 2.2% in 24 hours.

Still, Adler mentioned on X that if U.S. involvement in the Middle East escalates, investors may begin exiting equities and seeking more conservative instruments.

The fake breakout scenario WOULD leave many traders stuck, especially those hoping to ride a bullish wave.

One thing is clear: the next 72 hours could set the tone for Bitcoin’s direction, and the squeeze will either make or break the trend.