Positive geopolitical news could trigger a rapid BTC rally and liquidate heavily shorted positions, as per Swissblock analysts.
A dovish tone from Fed Chair Jerome Powell may fuel bullish momentum in BTC.
Bitcoin's perpetual funding rate turning negative indicates a heavy bearish market sentiment with increased odds for a short squeeze.
Bears have become overexposed amid rising geopolitical risks, potentially leading to a rapid upward move if sentiment shifts.
Market participants are closely monitoring key resistance levels, awaiting a narrative shift triggered by a dovish Fed stance or geopolitical de-escalation.