Bitcoin Long-Squeeze Risks Growing

BTC Dips from HighsBitcoin futures have undergone an almost 6% rotation lower over the last two daily sessions as choppy price action continues. BTC has been stuck in a laboured grind higher over recent weeks following a breakout move higher over October. While fresh YTD highs were posted late last week, the coin lacks the same bullish momentum we saw in October and price action looks vulnerable to a correction lower near-term unless we see a fresh bullish catalyst.Lull in SentimentOptimism over potential SEC approval of Bitcoin ETFs had driven the market higher over October. The opening of the first 8-day approval window in early November saw plenty of excitement. However, with the SEC ultimately choosing to delay any decisions until January, sentiment has weakened a little with traders turning elsewhere for momentum moves.Bullish Outlook for BTCLooking ahead, the broader backdrop remains bullish for BTC. With USD weaker and the Fed expected to remain on hold before cutting early next year, the SEC widely expected to approve some if not all spot BTC ETF applications and the upcoming April halving event in view too, BTC looks poised for further upside through coming months though near-term there are risks of a positioning clear out before we make the net move higher.Technical ViewsBTCPrice has been hugging the upper bull channel trend line over recent weeks and following a spike above last week, selling saw the market reversing sharply. BTC is now testing 37030 as support. While this level holds, focus remains on a push higher towards 39860 next. However, should we slip below, 34755 comes into view as the next support to watch.