Bitcoin is cooling off after a short-term overbought signal, but the setup still looks bullish and this dip may be a trap for short sellers.

• Bitcoin broke back below a resistance line near $66K after a brief breakout, a normal cool-off after getting overheated.
• The bigger picture stays bullish, with a strong weekly buy signal not seen since the end of the 2022 bear market.
• Lots of traders are betting on a crash by going short, which piles up liquidity above the price and could fuel a short squeeze upward.
• The stock market is flat, so no big push either way for crypto right now.
• Ethereum is the favored trade here, holding a long position and still climbing toward its target; Solana is stuck sideways and Chainlink just broke above key resistance.

Outlook: Expect a bit more short-term cooling, then a likely continuation of the bullish trend over the coming days and into next year.

## Bitcoin Levels

• **Bias:** Bullish (short-term cool-off within a bullish trend)
• **Buy / accumulate:** Weekly bullish divergence flagged as a long-term buying opportunity; strong support to buy near $60,000
• **Support:** $60,000 (major); $61.7K downside liquidity
• **Resistance:** $66.3K (flipped line), $66.5K–$67K short-term, $67K key level
• **Targets:** Upside liquidity zone $66.9K–$67.2K; then $70K range toward $73K–$74K
• **Invalidation:** Loss of higher lows / higher highs; a drop below support toward $61.7K would break the bullish structure