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Bitcoin’s Looming Short Squeeze: A Bullish Catalyst for BTC Price Surge

Bitcoin’s Looming Short Squeeze: A Bullish Catalyst for BTC Price Surge

Published:
2025-05-18 14:10:12
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[TRADE_PLUGIN]BTCUSDT,BTCUSDT[/TRADE_PLUGIN]

Bitcoin’s market dynamics are hinting at a potential short squeeze that could spell trouble for bearish traders. With Open Interest surging and a negative funding rate of -0.023%, the stage is set for a dramatic price movement. The $96,000 resistance level remains a critical threshold—breaching it could trigger cascading liquidations, propelling BTC even higher. Currently trading at 104,750 USDT, Bitcoin’s bullish momentum appears unstoppable.

Bitcoin’s Looming Short Squeeze Threatens Bearish Traders

Bitcoin’s market dynamics are setting the stage for a potential reckoning for short sellers. Open Interest has surged alongside a negative funding rate of -0.023%, revealing mounting bearish bets. Binance traders are particularly exposed, with over 60% of BTC/USDT positions on 4-hour charts positioned for downside.

The $96,000 resistance level remains critical—a breach could trigger cascading liquidations. February’s tight trading range between $98,900 and $93,500 has given way to increased volatility. Notably, rising HODLer accumulation and network growth suggest underlying strength that may overpower transient bearish positioning.

Market mechanics now resemble a coiled spring. Nearly $1 million in long positions were recently liquidated, but the concentration of shorts creates explosive upside potential. This developing setup mirrors classic squeeze formations where overcrowded trades reverse violently.

Bitcoin Supply Transition from STH to LTH Shows Robust Market Absorption

Bitcoin’s market dynamics are flashing bullish signals as supply shifts decisively from short-term holders to long-term investors. Over a 16-day period ending April 21, approximately 359,000 BTC transitioned from STH wallets to LTH custody—a clear sign of coin maturation and conviction among holders.

The trend briefly reversed during a two-day price rally when STHs added 70,000 BTC back into circulation, suggesting profit-taking during upward moves. Such supply consolidation historically precedes sustained bullish phases, as long-term holders effectively reduce liquid supply.

Bitcoin: Retail Investors Drive BTC’s Recovery – Next Stop $100k?

Bitcoin surged 11% last week, reclaiming the $94,000 level as retail traders on Binance fueled fresh momentum. Between April 19-23, over 15,000 BTC ($1.41B) were bought, signaling a shift in market sentiment.

The asset now hovers NEAR the midpoint between $89,000 and the psychologically critical $100,000 threshold. While technical indicators present mixed signals—some suggesting further upside, others warning of potential pullbacks—the dominance of Binance in retail spot trading (40% market share) adds weight to the bullish case.

Bitcoin Coinbase Premium Gap Stays Positive For 11 Days – Can Bulls Sustain It?

Bitcoin surges past $94,000 as bulls eye a decisive break above $95,000, a level that could catalyze a fresh rally toward record highs. The cryptocurrency has demonstrated remarkable resilience, decoupling from traditional markets amid escalating US-China trade tensions and macroeconomic uncertainty.

A key bullish indicator emerges from Coinbase, where the premium gap has remained positive for 11 consecutive days. This sustained demand from institutional investors contrasts with faltering equity markets, reinforcing Bitcoin’s appeal as a hedge against global financial instability.

Bitcoin Perpetual Swaps Signal Short Bias Amid Price Rebound

Bitcoin’s price surged 12% last week, reaching a local peak of $95,600, yet derivative traders remain skeptical. Glassnode reports a 15.6% increase in Open Interest for Bitcoin perpetual swaps since early March, now standing at 218,000 BTC. This rise in Leveraged short positions sets the stage for potential volatility.

Market euphoria contrasts with the cautious stance of traders, who continue to build short bets despite the rally. The divergence between spot price action and derivatives activity suggests underlying uncertainty, with liquidation risks looming.

Bitcoin Coinbase Premium Gap Signals Renewed Bullish Sentiment

Bitcoin surged past $90,000 this week, marking its strongest performance in 2025 after months of stagnation below $87,000. The breakout coincides with a sustained positive Coinbase premium gap—a historical indicator of institutional accumulation.

On-chain analyst Maartunn noted the rally aligns with resurgent ETF inflows, suggesting renewed institutional confidence. While the move’s sustainability remains debated, derivatives data shows shorts being squeezed as open interest climbs.

|Square

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