- The recent increase in Bitcoin has activated a considerably short squeeze, leading to substantial liquidations.
- The market remains volatile and investors must be prepared for possible corrections.
A green cryptomarkt usually causes problems for short-sellers, and those of Bitcoin [BTC] Dramatic return to the milestone of $ 100k was no different.
In a stunning movement that pose $ 970 million in lifting tree positions, Beerarish bets were strongly liquidated. In short, traders who were placed against the rally found themselves trapped in a short pinch.
The result? A Bullish Stormloop that let the bears bruised and the cryptomarkt cherishes in green glory.
A surprise rally for Bulls, a shock wave for bears
On May 2, Bitcoin was poorly due to the $ 98k ceiling, an outbreak. However, the order was anything but convincing.
Without a strong spot aid, Bulls Quick Moment lost. Bears smoke blood. With shorts up to 63.64% dominance in BTC/USDT -Perps on Binance, the setup was ripe.
What followed was a textbook Long Squeeze: open interest rinsed, Longs was genuked and BTC withdrew to $ 94k in just 48 hours.
But a week quickly, and the tables turned around. A brutal $ 970 million in liquidations marked one Market -wide reboundWith the financing speed (FR) Die Green nails for his longest piece in a month.
Source: Cryptuquant
Apparently futures traders are still all-in on a BTC Bull Run, with long dominance at 51.64% over trade fairs. The 4-hour orderbook shouts ‘Bullish Vibes’.
But the bears are not out yet. On Binance, 60% of the accounts are still Briefly positionedBet on a potential price rejection near the $ 103k resistance zone.
Has Bitcoin been set up for a potential liquidity trap and do you repeat the same market structure from last week?
Liquidity squeezes the Bitcoin bulls from a distance
Cracks start to show. Although BTC returned to $ 104k in a fast Intra-Day Move, Bitcoin’s Open Interest (OI) has drop About 4.30%, now resting at $ 63.70 billion.
In other words, futures traders are already getting at the output button, relaxing leverage and cashing when the hype fades.
However, there is not yet a solid sign of spot distribution. Chain flows suggest that Hodlers hold the line and keep an eye on higher goals.
So, this wave of derivative-driven sales-side pressure can simply be absorbed as a dip on the radar of a bull.
If Bitcoin continues with cutting through the supply walls, the setup is ripe for another punishing short squeeze. That $ 970 million? Could just be global warming.
Source: Coinglass
Liquidity cards emphasize a dense cluster of approximately $ 103,685, with $ 49.64 million in stacked lifting tree positions.
If bears become too comfortable, Bulls can jump the fall and Rocket Bitcoin to $ 105k.