HBAR Set for $4 Million Short Squeeze, But Bitcoin May Block It

Core Insights - Hedera (HBAR) is currently trading at $0.0923, forming a descending broadening wedge pattern that suggests potential for a bullish breakout, contingent on Bitcoin's performance [1][9] - The Money Flow Index (MFI) indicates a bullish divergence, showing reduced selling pressure as HBAR posted a lower low while MFI recorded a higher reading [2][3] - A confirmed breakout above $0.1012 could trigger significant short liquidations, potentially amounting to $4.34 million, which would enhance bullish momentum [4][5] Technical Analysis - HBAR's immediate resistance is at $0.0938, and a successful breakout requires flipping $0.1005 into support and decisively breaching $0.1071 [9][10] - Clearing the $0.1071 level would strengthen the bullish outlook and open the path toward $0.1300, indicating a recovery from recent losses [10] - Conversely, failure to overcome $0.0938 or a loss of support at $0.0855 could increase downside risk, with a potential drop toward $0.0780 confirming continued consolidation [11] Market Correlation - HBAR has shown increasing correlation with Bitcoin, meaning that HBAR's price movements often mirror Bitcoin's, particularly during declines [6][7] - A brief divergence occurred between June and July 2025, but overall, HBAR's price behavior aligns closely with Bitcoin's trends [7]