Is Bitcoin set for a short squeeze? Analyst points to Binance data
- Bitcoin has spiked to above $95k, hitting a two month high.
- Cryptocurrencies are up as stocks rise.
- CryptoQuant says the benchmark cryptocurrency could see a short squeeze.
Bitcoin price spiked to above $95k on Friday, hitting a two-month high as cryptocurrencies rallied alongside stocks on fresh sentiment around tariffs.
While the BTC price still awaits a retest of $100k, a CryptoQuant analyst says the benchmark cryptocurrency could be poised for a short squeeze.
The move above $92k could be crucial, the analysts said as they pointed to BTC data on Binance.
Why Binance Data Suggests a Bitcoin Squeeze Is Coming
“High-leverage longs were flushed out between $82K and $88K, indicating that weak hands had been eliminated. Large short positions remain susceptible above $92,000, creating the possibility of a short squeeze.” – By… pic.twitter.com/HbtkP1nGF5
— CryptoQuant.com (@cryptoquant_com) April 25, 2025
Why this matters
A short squeeze occurs when a sharp price increase forces short sellers to close their positions, driving further buying and amplifying the rally.
“Bitcoin has just surged above $95K for the first time in 2 months, leaving bearish traders kicking themselves for selling on tariff fears,” analysts at Santiment wrote.
With high-leverage longs already cleared out and short positions stacked above $92,000, Bitcoin is primed for a potential squeeze if it sustains strength above this critical level.
However, if Bitcoin fails to hold $92,000, it could face a correction toward $88,500 or lower, as bearish momentum could take over.
Binance data highlights thinner liquidity above current price levels, meaning there are fewer sell orders to absorb buying pressure.
If Bitcoin breaks above $92,000, the lack of resistance could amplify upward moves, especially if short liquidations add fuel to the rally.
This aligns with the potential for a squeeze, as thin liquidity zones often lead to exaggerated price movements.
Crypto, stocks rally
The heatmap indicates a notable concentration of short positions near the $100,000 level, highlighting a possible short squeeze scenario.
The psychological threshold remains a key target for bullish momentum.
In addition to gains across broader risk assets amid easing US-China trade tensions, other factors may also be influencing Bitcoin’s price movement.
ETF flows, the Federal Reserve’s policy shifts, with Trump saying he will not fire Jerome Powell, are also major points.
“It blows my mind that sophisticated investors really thought it was a good idea to sell American stocks and bitcoin because the President of the United States was implementing pro-America economic policies. Stocks and bitcoin both up since the close of Liberation Day,” Anthony Pompliano said.
However, IntotheBlock data shows over 94% of Bitcoin holders are in profit at current price levels.
Bitcoin ETFs recorded the highest net inflows since January this week. This interest caused Bitcoin’s price to surpass $95k, placing over 94% of holders in profit pic.twitter.com/5HTZb81f7h
— IntoTheBlock (@intotheblock) April 25, 2025
If prices surge further, one likelihood would be for some profit taking to kick in, potentially stalling bulls in the short term.
