BTCC / BTCC Square / Cryptonews /
Bitcoin Price Prediction: $800M Short Squeeze Resets Market as BTC Holds $95K - The Bulls Are Back in Control

Bitcoin Price Prediction: $800M Short Squeeze Resets Market as BTC Holds $95K - The Bulls Are Back in Control

Author:
Cryptonews
Published:
2026-01-16 00:38:37
19
3

A massive $800 million short squeeze just bulldozed through the market—clearing out weak hands and resetting the stage for Bitcoin's next leg up.

Bitcoin isn't just holding $95,000; it's using it as a launchpad. The liquidation cascade wiped out leveraged bets against the rally, injecting pure, forced-buying fuel into the engine. This wasn't a dip; it was a purge.

The Mechanics of the Squeeze

Think of it as the market's own garbage disposal. Over-leveraged short positions—bets that the price would fall—got obliterated as BTC held firm. Each liquidation triggers automatic buy orders, creating a feedback loop that rockets prices higher. It's brutal, efficient, and a classic hallmark of a strong bullish trend.

What $95K Support Really Means

Holding this level post-squeeze is the critical signal. It tells you the buying pressure is organic, not just speculative leverage. The floor is now cemented by real demand, from institutions and long-term holders who just watched the skeptics get their wallets handed to them. The resistance of yesterday is the support of today.

The Road Ahead

The path is clearer with the speculative clutter swept aside. The market reset removes a major overhang, allowing Bitcoin's underlying fundamentals—scarcity, adoption, macroeconomic hedge—to drive the narrative again. Traders are now re-positioning, but the power dynamic has decisively shifted.

So, while traditional finance pundits scramble to explain how a 'volatile digital asset' just executed a textbook market reset, the chart tells the real story: the squeeze was a feature, not a bug. The only thing getting disrupted harder than the shorts is the old financial playbook itself.

Short Squeeze Cleared Bearish Exposure

The rally was mechanically driven. As Bitcoin pushed higher, Leveraged shorts were forced to close, accelerating the move and resetting positioning. Bitcoin led liquidation totals, followed by Ethereum and Solana, underscoring how concentrated bearish exposure had become before the breakout.

After such events, markets often shift from momentum to digestion. Sellers become more selective, while buyers tend to step in on shallow pullbacks rather than chase strength.

Long Liquidations Signal Cooling, Not Breakdown

Over the past 24 hours, liquidation dynamics have flipped. Total crypto liquidations reached roughly $332.6 million, with long positions accounting for about $272 million, compared with $60 million in shorts. This indicates late bullish leverage is now being trimmed as momentum cools.

Liquidation Heatmap – Source: Coinglass

Ethereum shows the heaviest stress, with outsized long liquidations near resistance. Bitcoin, by contrast, remains relatively clean, with modest liquidation clusters. That divergence suggests BTC positioning is healthier and less crowded than much of the broader market.

From a structural standpoint, this is deleveraging, not distribution. As long as bitcoin holds its key support zone, the current liquidation profile supports a consolidation phase that resets leverage while preserving the broader bullish setup.

Bitcoin (BTC/USD) Technical Structure Signals Continuation, Not Distribution

On the 4-hour chart, Bitcoin price prediction seems bullish as BTC has reclaimed prior resistance near $95,000 and is now retesting it as support. This is a classic post-breakout behavior. The 50-EMA has crossed above the 200-EMA, confirming a medium-term trend shift, while higher lows remain intact above the rising trendline.

Candlestick structure shows smaller bodies and brief pauses near $96,500–$97,000, pointing to absorption rather than active selling. Momentum indicators support this view: RSI has cooled into the 55–60 zone, a typical reset seen during trend continuation phases, with no bearish divergence present.

Bitcoin Price Prediction: Path Toward $100,000

From here, the structure resembles a bullish consolidation flag. A shallow dip toward the $95,100–$94,500 demand zone, followed by a higher low, WOULD keep the bullish setup intact. A confirmed break above $97,600 opens the door to $99,000, with the psychological $100,000 level back in focus.

A loss of $93,300 would weaken the near-term outlook, but as long as price holds above that level, dips appear corrective rather than trend-ending.

Bitcoin remains positioned for continuation, with consolidation acting as a launchpad rather than a ceiling.

Bitcoin Hyper: The Next Evolution of BTC on Solana?

Bitcoin Hyper ($HYPER) is bringing a new phase to the Bitcoin ecosystem. While BTC remains the gold standard for security, Bitcoin Hyper adds what it always lacked: Solana-level speed. The result: lightning-fast, low-cost smart contracts, decentralized apps, and even meme coin creation, all secured by Bitcoin.

Audited by Consult, the project emphasizes trust and scalability as adoption builds. And momentum is already strong. The presale has surpassed $30.4 million, with tokens priced at just $0.013575 before the next increase.

As Bitcoin activity climbs and demand for efficient BTC-based apps rises, Bitcoin Hyper stands out as the bridge uniting two of crypto’s biggest ecosystems. If Bitcoin built the foundation, Bitcoin Hyper could make it fast, flexible, and fun again.

Click Here to Participate in the Presale

|Square

Get the BTCC app to start your crypto journey

Get started today Scan to join our 100M+ users

All articles reposted on this platform are sourced from public networks and are intended solely for the purpose of disseminating industry information. They do not represent any official stance of BTCC. All intellectual property rights belong to their original authors. If you believe any content infringes upon your rights or is suspected of copyright violation, please contact us at [email protected]. We will address the matter promptly and in accordance with applicable laws.BTCC makes no explicit or implied warranties regarding the accuracy, timeliness, or completeness of the republished information and assumes no direct or indirect liability for any consequences arising from reliance on such content. All materials are provided for industry research reference only and shall not be construed as investment, legal, or business advice. BTCC bears no legal responsibility for any actions taken based on the content provided herein.