Bitcoin (CRYPTO: BTC) tapped $81,000 on Tuesday morning as several indicators signal a buying opportunity, according to crypto analyst Michaël van de Poppe.

The Q4 2022 Parallel

Van de Poppe noted that the current perpetual funding rate remains negative at 5% annualized, meaning shorts are paying longs. This doesn’t happen often, and quite often there’s a strong rally afterward.

“Bitcoin is at its capitulation point,” van de Poppe posted. “That also resonates with the current market sentiment, where nobody is interested in buying into this asset class. That’s usually the best moment to be doing so,” he added.

The Short Squeeze Setup

Van de Poppe explained that there are not many leveraged longs left to be liquidated in the markets. The market remains spot-driven without forced sellers.

As price pushes higher toward $82,000 and above, shorts face forced liquidations, which mechanically accelerates upside momentum.

ETF inflows support this thesis with $1.5 billion flowing in since April 13. The higher the price moves, the more likely shorts get liquidated, and there are still plenty left given the current funding rate status.

“Essentially, the markets are the exact opposite of what they were prior to the crash, which means I think it won’t last long from here,” van de Poppe concluded.

The Technical Decision Point

Bitcoin executed a clean liquidity sweep below the Candle Range Low near $75,978, shook out weak hands, and reversed sharply through the entry level at $77,038.

The Candle Range High around $80,500 to $81,000 is being challenged in real time.

Directly above sits the 200 EMA at $82,088, the single most watched resistance on the daily chart. These two confluences stacked together make this zone a genuine decision point.

Meanwhile, the supertrend flipped bullish at $74,406, confirming the trend change. 

The EMA stack at 20 EMA ($77,038), 50 EMA ($74,682), and 100 EMA ($75,978) is beginning to curl upward, a structure that historically precedes sustained momentum moves.

Bulls need a clean daily close above $82,088. Invalidation occurs on rejection back below $79,000. Break and hold above the 200 EMA would be the first such close in months.

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