Bitcoin short squeeze from $60k to $110k is VERY likely. Part 2.Bitcoin / U.S. dollarBITSTAMP:BTCUSDpistissophiacapitalAs I mentioned in Part 1, sentiment was largely boredom/frustration. But during the late May–early June panic — when price dropped from $77k to $59k — it turned very negative. I've been watching Crypto X, and people suddenly became obsessed with Michael Saylor's liquidation levels and Bitcoin miners switching their data centers from mining to AI training. Such panics accompanied by negative sentiment usually suggest oversold conditions. From a psychological standpoint, however, there are always many short sellers waiting for a bounce to a new low — which may never come. The panic stopped exactly at MA200 W1, and price formed a double bottom with a negative weekly RSI divergence. The daily RSI dropped below 15.5 — something that has only happened twice before: during the 2018 crash and the 2020 COVID crash. This strongly suggests oversold conditions. Since the panic, price has been consolidating around MA200 W1 with slow upward moves and no sharp drops — indicating that not much supply is left. This points to reaccumulation and an absence of selling pressure. In my experience, panic followed by reaccumulation at a major support level almost always leads to a significant move up. To recap: frustration/boredom sentiment turned into outright panic. That panic stopped exactly at MA200 W1 — the strongest support level in Bitcoin. Price formed a double bottom with a negative weekly RSI divergence and an extremely oversold daily RSI. Since the panic, price has been reaccumulating. The large number of short sellers who piled in at the bottom will provide fuel for a rally. This is the second building block of my thesis. More in Part 3.