Bitcoin continues to consolidate within the $88,000 price zone, resulting in no significant price move over the last day. The “digital gold” had experienced a highly volatile trading week, marked by swift price swings between $85,000 and $90,000. During this period, the Bitcoin futures markets registered two major short liquidation events, which could meaningfully impact price trajectory in the days ahead. Related Reading: Bitcoin In Standby Mode: Weekend Ranges Rule Before Holiday ‘Chop’ Bitcoin $600M Short Liquidation To Limit Price Upside: Analyst In a QuickTake post on December 20, popular analyst Amr Taha highlights some important developments in the Bitcoin futures markets with significant implications for price growth. As the premier cryptocurrency struggled to establish a stable price direction over the last week, the market recorded two consecutive short liquidation events, eventually pushing prices to trade above the $87,700 price level. Notably, short liquidation occurs after traders bet on the downside and the asset’s price moves sharply upward, eroding their margin and forcing exchanges to close those positions, sometimes amplifying the rally in a short squeeze. Traders log in waves of short positions amid heightened bearish expectations, such as when Bitcoin twice fell below $90,000 in the last week. Amr Taha reports that each of the dual short liquidations exceeded $300 million, bringing total losses to $600 million. Interestingly, the analyst further explains that short liquidations are bullish during the move, but once completed, they frequently mark temporary resistance unless followed by strong spot buying and volume expansion. This is due to a lack of organic market demand, as the initial price boost was driven by former short sellers being forced to buy back their position, thus creating the short price squeeze seen in the market. Related Reading: Major Ethereum Metric Just Hit A New All-Time High – Can Price Reclaim $3,000? Low USDT Transaction Volume Signals Fading Liquidity Notably, Amr Taha also discovered another underlying development that could limit Bitcoin’s recent price surge. The renowned analyst notes that USDT Transaction volume on the TRON and Ethereum blockchains has drastically declined over the last month. On November 10, USDT transfers on these platforms reached $13 billion (TRON) and $35 billion (Ethereum). However, CryptoQuant data shows that these figures dropped to $1.7 billion on TRON and $3.7 billion on Ethereum, marking respective losses of 86.9% and 89.4%. Generally, a diminishing USDT transaction volume suggests low market liquidity, which would impact investors’ ability to drive up market demand. This factor, coupled with the expected brief performance of the short-squeeze, means Bitcoin may struggle to produce more price gains in the coming days. At press time, the leading cryptocurrency trades at $88,321, reflecting a 0.72% gain in the past day. Featured image from Flickr, chart from Tradingview
Bitcoin is struggling to reclaim the $90,000 level as selling pressure continues to dominate across the crypto market. The sharp decline from the all-time high has fueled growing speculation that the current cycle may have already peaked, with many analysts now calling for the beginning of a bear market. Sentiment has shifted rapidly, and fear is spreading as traders question whether the bullish structure has been permanently broken. Related Reading: Bitmine Scoops Up Another 28,625 Ethereum ($82.1M) as Market Bleeds – Details However, not everyone agrees with the bearish outlook. A segment of market participants still expects a rebound, arguing that the correction is part of a broader continuation pattern rather than the end of the cycle. These optimistic observers believe that higher prices could still unfold once selling exhaustion sets in. According to top analyst Darkfost, the recent price action reflects a notable behavioral shift in traders. He explains that investors who attempted to long the market throughout the correction have finally been squeezed out. Funding rates, which had remained elevated during the decline, have now cooled and even turned negative — a strong signal that sentiment has flipped. Darkfost notes that traders waited for Bitcoin to correct more than 30% before shifting aggressively into short positions, highlighting a delayed reaction that often appears near market inflection points. Funding Rates Flip Negative as Short Dominance Takes Over Darkfost explains that the latest shift in funding rates is more meaningful than it appears on the surface. He notes that traders often assume the neutral funding level is 0%, but that is not the case. Most exchanges — including Binance — embed an interest component of roughly 0.01% into the funding calculation. This means that when funding drops below 0.01%, it already reflects short-side dominance. Therefore, when funding turns negative, it signals an even stronger tilt toward aggressive short positioning. According to Darkfost, this marks a clear behavioral change among derivatives traders, suggesting that the market has transitioned from forced long unwinds to conviction-based short exposure. Historically, these shifts tend to occur only once a correction is already deep into its progression. Darkfost highlights that such funding transitions often reflect trader capitulation — where participants who fought the downtrend finally flip and attempt to follow momentum, but only after most of the move has already unfolded. This phenomenon has appeared in previous cycle retracements and has frequently coincided with late-stage bottoms. He adds that Bitcoin may now be entering a disbelief phase, where price begins climbing while shorts continue to pile in. If this dynamic persists, it could act as fuel for an upside reversal, especially if spot demand wakes up and liquidations pressure the short side instead. Related Reading: 63K Bitcoin Exits Long-Term Wallets: A Surge of Speculative Short-Term Buying BTC Price Testing Short-Term Supply Bitcoin is attempting to stabilize after a sharp decline, with the chart showing price currently trading around $87,000 following a rebound from the recent plunge near $80,000. The downtrend remains clearly defined, as BTC continues to trade below the 50-day, 100-day, and 200-day moving averages, signaling persistent bearish momentum. The slope of these moving averages has turned downward, reinforcing the shift in trend structure. Despite the bounce, the recovery lacks strong volume support, which suggests that buyers have not yet returned with conviction. Related Reading: STH Panic Emerges as Bitcoin Crashes To $81K: Realized P/L Turns Negative For The First Time This Cycle The chart shows that previous support levels around $95,000 and $100,000 have now become resistance areas, making them key levels to watch for any attempted recovery. A failure to reclaim these zones could trigger renewed selling pressure and a retest of the recent lows. However, the wick below $80,000 indicates aggressive buying at the lows, which could signal that a short-term bottom is forming if buyers continue to defend higher lows in the coming days. Market sentiment remains fragile, yet the stabilization above $85,000 hints at a potential consolidation phase rather than immediate continuation of the decline. A sustained move above the 100-day moving average would be the first meaningful signal of regained bullish momentum. Featured image from ChatGPT, chart from TradingView.com
While the Bitcoin price is hovering below the crucial resistance at $96,500, the liquidation heatmap on Binance’s BTC/USDT pair is sending powerful signals of a potential short squeeze to the upside. Analyst Kevin (@Kev_Capital_TA) shared his insights alongside the attached liquidation heatmap, noting signs of significant liquidity pools forming both above and below Bitcoin’s current trading range. “What we’re seeing over the last couple of days is lining up perfectly with what I have been saying,” Kevin explained, referencing his earlier market calls. “Sweep liquidity towards 91K which we did yesterday. Maybe we take more maybe we don’t but overall I have never seen this much liquidity to the upside on the monthly time frame on #BTC.” According to Kevin, the data strongly suggests that large liquidity—where traders’ positions would be forced to liquidate—is now stacked around the 91K region and, more crucially, near the 111K mark. While the lower zone might still see occasional sweeps, it is the massive cluster of liquidity around 111K that has prompted him to forecast a potential move to that level. Related Reading: Bitcoin To $500,000: Standard Chartered Doubles Down On 2028 Target “There is more emotions in this market right then I have ever seen,”he continued. “Gurus are quitting X, Youtubers aren’t streaming or making content anymore, The comments are hateful and insulting every single day […] Meanwhile over here we are staying measured and calculated.” Kevin emphasizes that many market participants are fixated on altcoins rather than monitoring Bitcoin’s liquidity structure, overall market capitalization, and USDT dominance. He argues that traders’ narrow focus on individual altcoins, rather than these broader metrics, is causing them to miss critical signals. “The problem is everyone is hyper focused on the wrong thing and that is #Altcoins charts,”he said. “I’m literally giving you the playbook. Follow it.” What The Bitcoin Liquidation Heatmap Tells Us A liquidation heatmap illustrates where large batches of leveraged positions—such as futures or margin trades—are most likely to be force-closed if the price reaches certain levels. When many traders place stop-losses or maintain heavily margined trades around similar price points, these zones often accumulate as “hot spots” on the heatmap. If price action nears these clusters, it can trigger a chain reaction: forced liquidations drive further price movement, which can then cascade into a faster squeeze or sell-off. Related Reading: Bitcoin Meets Fiscal Reality: Fidelity’s Timmer Predicts What’s Next In Kevin’s view, Bitcoin’s heatmap currently shows billions of dollars in potential liquidations concentrated at higher levels (111K) and a significant liquidity block below (around 91K). The presence of this deep liquidity on the upside has led Kevin to anticipate a “bigger relief rally” that might force out short positions en masse. “Now as we can see […] we have billions in liquidity to the upside at 111K. More than I have ever seen on the 1M time frame,” he remarked, emphasizing how unusual he finds this month-long concentration. “It would be totally fine and preferable if we swiped [the 91K area] first to build up even more liquidity to then start the real relief rally.” Alongside liquidity data, Kevin also cites sentiment indicators such as the Fear & Greed Index, currently reflecting a “fear” reading. From his standpoint, this environment suggests that the market’s emotional extremes—coupled with heavy positioning—could be setting the stage for a swift momentum shift higher, as negative sentiment often accompanies local bottoms. “You can tell this relief rally wants to get going but it’s just not totally there yet […] I see no reason to be overly bearish on this market. You guys need to calm down and stop being so angry. Stop being so soft.” At press time, BTC traded at $96,334. Featured image created with DALL.E, chart from TradingView.com
The Bitcoin dominance (BTC.D) surged above 64% this week, its highest level since March 2021, sparking debate over an impending short squeeze that could send its price skyward. The stark warning comes from Joe Consorti, Head of Growth at Theya, who took to X on Monday to outline what he views as a decisive turning point for Bitcoin versus the rest of the digital asset market. A Historic Break In Bitcoin’s Correlation Patterns In his post, Consorti contends that Bitcoin’s recent price action marks the first time in its 16-year history that both its price and market dominance have risen in tandem. Historically, Bitcoin’s dominance would rise initially, only to wane as speculation spilled into altcoins. However, Consorti states: “This is the first time in history that bitcoin’s share of the total digital asset market is rising while its price is climbing. In past cycles, retail-driven speculation pushed bitcoin’s price up and later funneled money into altcoins, causing bitcoin dominance to decline. That dynamic is gone.” According to Consorti, the days when a broad altcoin rally would follow Bitcoin’s initial surge appear to be over. Bitcoin dominance recently touched 64%—its highest level since February 2021. Consorti attributes the phenomenon to a significant change in market participation: “This cycle, institutions, sovereigns, and long-term holders are leading the charge, increasingly allocating capital exclusively to bitcoin while largely ignoring the rest of the market.” Related Reading: Bitcoin Funding Rate Turns Neutral On Top Exchanges: What Happened Last Time Last week’s market turbulence resulted in what Consorti calls “the single-largest liquidation event in ‘crypto’ history,” citing data that more than $2.16 billion in positions were wiped out within 24 hours. Ethereum led the liquidation figures with $573 million, and the largest single liquidation—a $25.6 million ETH/BTC order—occurred on Binance. “As you might have guessed, ETH/BTC is not having a great time,” Consorti notes, pointing out that the ETH/BTC pair is trading at 0.026—its lowest level in over three years. He argues these liquidations highlight the precarious nature of heavily leveraged altcoin markets: “All of it wiped out in an instant when price moved against them. This wasn’t your standard technical correction, it marks the start of an extinction-level event for altcoins.” The “Altcoin Casino” In Crisis Consorti’s analysis suggests that what he dubs “the altcoin casino” is now collapsing. He points to failed narratives around popular projects—Ethereum, Solana, and DeFi among them—that have struggled to maintain investor confidence: “Altcoins have survived purely on narratives. Each cycle, a new batch of narratives emerged, promising world-changing innovation. None of them lasted.” He contrasts this with Bitcoin’s core value proposition, which, in his view, requires no marketing: “Bitcoin, on the other hand, doesn’t need a narrative. It doesn’t need marketing or hype. It exists, and it thrives because it was built to do one thing—protect wealth in a world of perpetual monetary expansion.” Consorti also references Ethereum’s “merge” and its supposed deflationary design, pointing out that since the upgrade, ETH’s total supply has increased by 13,516 ETH—undermining the “ultra-sound money” claim. Related Reading: Bitcoin In 2025: History Could Repeat With A 2017-Style Surge Adding a policy dimension to the market’s transformation, Consorti highlights a statement from Senator John Boozman during the White House Crypto Working Group’s first press conference: “Some digital assets are commodities, some are securities.” This, he suggests, is a tacit acknowledgment that Bitcoin stands apart from other digital assets. In a further development, Consorti cites a comment from White House AI & Crypto Czar David Sacks, who mentioned the group is evaluating the viability of a Strategic Bitcoin Reserve—a shift from the previous “National Digital Asset Stockpile” terminology used under a Trump-era executive order. Consorti frames this as a “major development” that signals growing recognition of Bitcoin’s unique properties: “This language shift is monumental. A few years ago, the US government was openly hostile toward bitcoin. Today, they’re discussing stockpiling it.” Amid this upheaval, Consorti suggests that the next dramatic move in Bitcoin could be an explosive short squeeze. Funding rates on perpetual futures, he notes, have gone “deeply negative,” reminiscent of when Bitcoin traded near $23,000 in August 2023. This implies a tilt in leverage toward traders betting against Bitcoin—a position that could rapidly unwind: “While last week’s leverage flush wiped out most long positions, the next major move could be the opposite—an explosive rally fueled by forced short liquidations.” Should the market turn against these short-sellers, the forced buy-backs could drive the price higher with unusual speed and volume—especially if overall liquidity remains thin. He concluded, “Traders who overextended their leverage to short bitcoin will eventually have to buy it back when the price moves against them, just like overleveraged longs were wiped out last week. Bitcoin is coiled. The stage is being set for a potential short squeeze. The longer this dynamic of short dominance persists, the greater the risk of a forced shirt liquidation cascade that sends bitcoin’s price higher with force.” At press time, BTC.D stood at 61.19%. Featured image created with DALL.E, chart from TradingView.com
Bitcoin surged to new all-time highs during election night, hitting an impressive $75,300 as market excitement reached a fever pitch. This milestone pushed Bitcoin into price discovery, igniting significant liquidations across trading platforms. Data from CryptoQuant reveals an unprecedented surge in short liquidations, surpassing $100 million within a single one-minute candle, marking a historic moment for BTC. This explosive price action was fueled by the surprise Trump win in the U.S. election, which appears to have sparked renewed enthusiasm for crypto assets as investors respond to the potential economic policies ahead. The election outcome has sent shockwaves through the market, with Bitcoin leading a fresh rally across the crypto space. Related Reading: Ethereum Analyst Shares Correlation With S&P500 – Last Dip Before It Hits $10,000? Now in uncharted territory, Bitcoin’s move above $75,000 represents a powerful statement of investor confidence despite broader economic uncertainties. As BTC enters price discovery mode, traders and investors alike are bracing for further volatility, while many anticipate that this momentum could extend into even higher highs. The coming days will be critical as Bitcoin’s price action continues to drive liquidations and shape the outlook for the broader market. Bitcoin Bullish Phase Begins Bitcoin has officially entered a bullish phase, setting new all-time highs following Donald Trump’s election victory. As a known crypto supporter, Trump’s win has spurred market optimism, pushing BTC’s price above previous ATHs in a surge that began as election results favored his lead. This bullish breakout was accompanied by a dramatic liquidation spike, signaling strong buying pressure as bearish bets were swiftly unwound. Data from CryptoQuant analyst Maartunn shows that short liquidations exceeded $100 million in a single one-minute candle—an unprecedented event that underscores the power behind this rally and suggests that Bitcoin’s upward momentum is just beginning. In the coming days, volatility will remain high as global markets digest the election outcome and brace for the Federal Reserve’s upcoming interest rate decision on Thursday. Investors anticipate a dynamic market response, with possible ripple effects across traditional and crypto markets. Should the Fed keep rates steady or make any dovish adjustments, it could further bolster Bitcoin’s rally and strengthen the broader crypto market. Related Reading: Solana ‘Must Break Descending Resistance’ To Regain Bullish Momentum – Analyst The outlook remains bullish as market sentiment shifts positively with Bitcoin’s new price discovery phase. While short-term fluctuations are likely amid these major events, the long-term view favors a bullish trend as Bitcoin leads the crypto market higher in this new post-election environment. BTC Visits Uncharted Territory Bitcoin is trading at $73,800 after breaking its previous all-time highs and reaching a new peak of $75,300. This breakout has pushed BTC into uncharted territory, a phase that historically signals massive gains as bullish momentum builds. The focus is whether Bitcoin can maintain its momentum above the previous ATH of $73,800, a critical support level that could propel it further into new highs if held successfully. However, the timing of this move aligns with a particularly volatile week, as the market anticipates the Federal Reserve’s upcoming meeting. The Fed’s decision on interest rates could introduce significant unpredictability, potentially tempering BTC’s rise or even sending it below the $70,000 mark if the outcome diverges from market expectations. As BTC navigates this price discovery phase, investors are closely eyeing key levels. Related Reading: Ethereum Risk-To-Reward Ratio Is ‘Too Good To Pass Up’ – Top Analyst Sets $6,000 Target Holding above $73,800 would strengthen the bullish narrative, while any pullback would test support levels and investor resilience amid broader market uncertainty. With volatility expected, this week could be pivotal for Bitcoin’s trajectory in the months ahead. Featured image from Dall-E, chart from TradingView
Bitcoin is on the verge of a historic move as it pushes toward its all-time highs, surging above the $71,000 mark just yesterday. This breakout has ignited optimism among analysts, who expect further upside in the coming weeks as the US election draws near—a period historically marked by heightened volatility and market shifts. Critical data from CryptoQuant indicates that Open Interest has reached $22.6 billion, with half of these positions held by bears. If Bitcoin continues to climb, this setup creates a high risk of short liquidations, potentially accelerating buying pressure as prices push above $71,000. Related Reading: If Dogecoin Breaks Above Key Resistance ‘We Could See A 25% Rally’ – Top Analyst As momentum builds, the next few days will determine whether BTC can sustain its uptrend or if a consolidation phase below the all-time high will continue. Investors are closely watching these price levels, as a confirmed breakout could signal new highs for Bitcoin. At the same time, a stall might suggest a need for additional consolidation before a larger move. Bitcoin Bears In Serious Trouble Bitcoin bears are now at high risk of forced liquidations as a significant level of short position liquidity hovers above the $71,000 threshold. According to top analyst and macro investor Axel Adler, this scenario could ignite a powerful rally if short positions start liquidating en masse. Creating momentum that propels BTC beyond its all-time highs. Adler shared a CryptoQuant chart on X, noting that Bitcoin Open Interest has surged to $22.6 billion, with half of these positions held by bears. In his analysis, Adler emphasizes that the current market structure is poised for a major squeeze. “There’s no need to hesitate in liquidating short positions to drive the price up,” Adler states, suggesting that a cascade of liquidations above $71,000 could act as a launchpad for Bitcoin, taking it into uncharted price discovery levels. This process, known as a “short squeeze,” occurs when overleveraged short holders are forced to close their positions, resulting in large buy orders that send prices even higher. Related Reading: Solana Bullish Pattern Holds – Crypto Analyst Sets $202 Target If this scenario unfolds, Bitcoin wouldn’t be the only one benefiting. As BTC leads the market, a rally past previous highs could signal a fresh cycle for the entire crypto space. Altcoins typically follow Bitcoin’s lead, and the spillover effect could fuel a comprehensive bull run, with new highs across multiple assets. Investors are watching closely, as such a move could renew interest and investment in the crypto market, drawing in retail and institutional capital. With BTC on the edge of price discovery, the next few days may prove pivotal in shaping the market’s direction. BTC Testing Cruial Supply Bitcoin is testing a supply zone at $71,200, brushing up against the last resistance level before reaching its all-time high. Bulls appear firmly in control, with price action signaling a likely breakout above this level in the coming days. Breaking and holding above the $70,000 mark remains critical. This psychologically significant level reinforces bullish sentiment, encouraging more buyers to enter the market. However, a temporary retracement to gather liquidity at lower demand levels would benefit Bitcoin’s uptrend. A dip toward the $69,000 level, or even down to $66,500, would still align with a bullish outlook. It could attract further interest and create a healthier base for the next rally. These areas would allow Bitcoin to gather liquidity before making a stronger push toward new highs. Related Reading: Ethereum Whale Activity Spikes To 6-Week High – Smart Money Accumulation? Traders are watching, knowing that a sustained move above $71,200 could pave the way for price discovery beyond all-time highs. A successful breakout could trigger renewed momentum across the market, sparking a broader bull run as Bitcoin leads the charge. Featured image from Dall-E, chart from TradingView
Bitcoin has experienced a volatile week, with prices oscillating between a local high of $69,500 and a low of $65,000. After weeks of excitement and upward momentum, the market has cooled off, and BTC is currently consolidating below the critical $70,000 level. This consolidation phase is crucial as traders assess the next potential move for Bitcoin. Related Reading: Ethereum Whale Activity Spikes To 6-Week High – Smart Money Accumulation? Analyst Ali Martinez has shared significant data from Binance, highlighting the high risk for short positions at the $68,500 mark. When such risk levels are present, the price often seeks liquidity, which suggests that it may gravitate toward supply zones. This behavior indicates that the market is potentially targeting areas where sellers may be positioned, which could lead to further fluctuations in price. The interplay between these resistance and support levels will determine Bitcoin’s trajectory. A decisive move above these levels could signal Bitcoin’s next phase, making it critical for investors to remain vigilant. Bitcoin Short Squeeze Looms Bitcoin is reaching a pivotal moment, with the market buzzing with expectations for a potential push toward all-time highs. Martinez recently shared crucial data on X, revealing that a significant number of short positions are at risk of liquidation, particularly around the $68,598 mark. The cumulative short liquidation leverage at this price level is approximately $452.36 million, indicating that a substantial amount of capital could be affected if the price continues to rise. This scenario sets the stage for a bullish outlook, as overleveraged short positions suggest that Bitcoin could find liquidity at supply levels. This could trigger a cascade of buying pressure. When the price breaks above the key $69,000 mark, it could lead to a wave of Fear of Missing Out (FOMO) among traders and investors watching from the sidelines. The liquidation of these short positions could propel Bitcoin’s price higher, strengthening the bullish narrative. Market participants closely monitor this critical threshold, as a decisive break above $69,000 could ignite a surge toward previously untested highs. Related Reading: Solana Breakout From Bullish Pattern Could ‘Send SOL To The Moon’ – Crypto Analyst Maintaining awareness of both market dynamics and key price levels is essential for traders looking to navigate the volatility. The next few days could prove crucial as Bitcoin approaches this significant moment, and how it reacts to these overleveraged positions may determine its trajectory in the coming weeks. BTC Liquidity Levels Bitcoin (BTC) is currently trading at $67,100 after a week marked by volatility and uncertainty. The price has pushed above the $66,000 level, signaling strength and hinting at a potential rally in the coming weeks. This upward movement reflects renewed optimism in the market, as investors look for signs of sustained bullish momentum. However, it’s essential for BTC to maintain its position above the $65,000 mark. If the price fails to hold this level, a sideways consolidation may occur, allowing the market to gather liquidity before making its next move. This consolidation phase could set the stage for a surge in buying activity as traders look to capitalize on potential opportunities. Related Reading: Dogecoin Liquidity Sweep Signals DOGE Is Ready For A Rally A break above the key $70,000 level would further strengthen the bullish outlook, potentially initiating a new uptrend. Such a movement could attract additional investment and excitement in the market, as traders and investors respond to the breakout. Featured image from Dall-E, chart from TradingView
Data shows the Bitcoin funding rates on exchanges have turned negative, a sign that the shorts have now become the dominant force in the market. Bitcoin Funding Rates Have Turned Negative After Market Crash As pointed out by an analyst in a CryptoQuant Quicktake post, the Bitcoin funding rates have seen a sharp decline recently. The “funding rate” refers to a metric that keeps track of the periodic fee that derivatives contract holders are currently exchanging with each other. When the value of this indicator is positive, it means the long investors are paying a premium to the short ones in order to hold onto their positions. Such a trend implies a bullish sentiment is shared by the majority in the sector. Related Reading: Chainlink (LINK) Recovers 20% As Network Lights Up With Activity On the other hand, the metric being negative implies a bearish mentality could be the dominant one in the market as the short holders outweigh the longs. Now, here is a chart that shows the trend in this Bitcoin indicator for all exchanges over the past few months: As displayed in the above graph, the Bitcoin funding rate had been positive throughout the year 2024, save for a couple of small dips into the negative region, until this latest crash, which finally took the indicator to notable red values. The earlier positive values were naturally due to the fact that the market had a bullish atmosphere to it, so the average investor was trying to bet on the price to rise. From the graph, it’s visible that this positive sentiment was the strongest during the rally to the all-time high (ATH) price fueled by the spot exchange-traded fund (ETF) demand. During the consolidation period that had followed this rally, BTC had seen a couple of notable drawdowns, but they weren’t enough to shake off the bullish mood. The recent sharp crash, though, appears to have finally caused investors to have a bearish outlook on the cryptocurrency. The Bitcoin crash had resulted in a huge amount of long liquidations in the market, triggering what’s known as a squeeze. In a squeeze event, a sharp swing in the price causes mass liquidations, which in turn fuels the price move further. This then unleashes a cascade of more liquidations. Since the latest such event involved the longs, it would be called a long squeeze. In general, an event of this kind is more likely to affect the side of the derivatives market that is more dominant. As this power balance has shifted towards the shorts now, it’s possible that the market could instead see a short squeeze in the near future. Related Reading: Is Bitcoin In A Bear Market Now? Here’s What On-Chain Data Suggests Naturally, it’s not necessary that a short squeeze should take place, but if the price ends up witnessing some volatility, it’s possible it may end up punishing the short-heavy market. BTC Price Bitcoin has been steadily making recovery from the crash as its price has now climbed back to $57,500. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com