Bitcoin has repeatedly failed to hit $108,500, and the two major resistances are still to be broken but not unsolvable

Bitcoin has seen a slight increase of about 2.8% in the past 24 hours and is now trading at around $92,500. Technically, the daily chart remains in an inverse head and shoulders pattern, with a target price of $108,500, but the market has failed to hit key resistance multiple times. The current pressure is mainly coming from two aspects: stubborn resistance and insufficient buying by whales.

First, the price has been moving along an inverse head and shoulders pattern since November 16, but the neckline of $93,700 has never been able to break out effectively. Multiple upward explorations have been suppressed, and the pattern has not yet been truly activated. Only if the price closes steadily above this pressure can new upside be released.

Secondly, whale holdings continue to weaken, with the number of addresses holding at least 1,000 BTC declining since November 19. On December 3, it fell to a monthly low of 1,303, which diverged from the trend of rising prices, making the breakout lack the support of large funds. For example, during December 2~3, Bitcoin hit $93,400, but whale reduced its position and immediately fell back to $89,300, a drop of about 4.4%.

However, resistance levels and whale reductions are not structural problems and are reversible. Both obstacles may disappear once the sentiment of funds changes.

What’s more, Bitcoin currently has a strong short squeeze pattern. In the past 30 days, the amount of short liquidations on a mainstream CEX reached $3.66 billion, significantly higher than the $2.22 billion of longs. This means that short positions are heavy, and once the price breaks above $93,700 again, it may trigger a series of liquidations, driving the price upward quickly.

Recent market trends have verified that a small increase of 1%~2% may be amplified by short liquidations into stronger upward momentum. If the price holds firm at $93,700, the bearish squeeze is expected to be enough to push a break above $94,600 and even further towards $105,200. If its overhead pressure is broken, the inverse head and shoulders pattern is expected to drive Bitcoin to $108,500.

Overall, Bitcoin’s short-term movement still depends on the ability to break through the $93,700 neckline. Resistance and whale attitudes temporarily suppress the price, but the potential explosive force of the bears’ squeeze could still be a key driver for Bitcoin’s upward breakout.