Bitcoin: Here's what level to expect a short squeeze

Last week, the crypto market faced many problems as fear, uncertainty and doubt (FUD) were the main reasons for the fluctuations in the price of most cryptocurrencies.

Dory Bitcoin (BTC) could not resist pessimistic emotions, thus creating a situation where a potential short squeeze was held.

Based on the latest data from CoinGlass, so far both short and long Bitcoin derivatives trades have lasted much longer than normal ie. more than a month, and the initial open interest figure is still high at $34.5 billion, with the price of BTC at $66,584.

Very intense speculative trading, opened by operating both long and short positions, made some large market imbalances, which were the potential motivations for a short squeeze. One way short leveraged trades have worked is to cause the overall value to move up even around the $72,000 level, a change consolidating resistance.

Liquidations of short positions in Bitcoin reached almost $2 billion, and further liquidations could be seen up to the $73,000 level. Therefore, it is very likely that the $72,000 to $73,000 range will be used for a potential short squeeze.

Credible Crypto is a professional trader and analyst who thinks , that other signals also suggest a future short squeeze. From a recent post on X (Twitter), the researcher clarified that there is a bullish divergence with CVD (cumulative volume delta).

The analyst shared that the CVD curve has seen a decline in the volume of sell orders in the market as opposed to buy orders. However, a drop in the price of BTC was expected due to increased selling pressure, but there was no major correction. The trader sees this as a bullish indicator and notes that buy orders are running out and a supply shock is coming.

“CVD measures the net difference between market buy and sell orders. Movement in this direction indicates more market selling than buying. Normally this should cause the price to drop, but if the price is not going down despite a large number of market participants selling, what would that mean?”

The market is extremely dynamic, with crypto traders constantly reassessing their positions and adjusting their strategies, thereby affecting market orders, open interest and the likelihood of high volatility events.