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The number of open contracts for Bitcoin (BTC) is increasing rapidly, but not in a way that benefits the bulls. The funding rate has just flipped negative, sitting at -0.023%, signaling a surge in short positions.
On Binance, over 60% of traders are shorting BTC/USDT on the 4-hour chart. So what about the long traders? They’ve been hit hard, with nearly $1 million in liquidations as traders took profits after BTC bounced back above $95,000.
However, since February, $96,000 has proven to be a nearly unbreakable wall. With so many short positions currently open, could a short squeeze push Bitcoin beyond this key level?
Bitcoin Is Entering a Critical Zone
At the start of February, Bitcoin got stuck in a loop between $98,900 and $93,500, getting pulled back every time it crossed above $95,000. But this time, the situation feels noticeably different.
Previously, price movements were mostly driven by macroeconomic fear and panic.
Now, Bitcoin has surged to $95,000 following a much stronger bullish rally, breaking through previous resistance zones. In short, many holders are now in profit and have fewer reasons to sell off.
The HODL season may be back. According to on-chain data, Bitcoin’s Realized HODL Ratio (R-HODL) has just hit its highest level in two months.
The increase in the R-HODL ratio suggests that the market is shifting into accumulation mode, meaning holders are storing their Bitcoin and are in no rush to sell.
Additionally, around 30,000 new BTC addresses were created on April 23, right as Bitcoin was fluctuating around $93,727.
Overall, it’s clear that people are accumulating BTC, with no real signs of selling pressure.
This clearly shows that investors are expecting a larger rally ahead. That’s why this pullback feels more like a shakeout rather than a full-blown crisis — it’s flushing out weak hands before the real party starts.
A Short Squeeze Might Be Exactly What Bitcoin Needs
At the moment, Bitcoin is trading just below $95,000, and many are speculating about a possible correction.
The late-February rally showed early signs of strain. Short traders entered the market aggressively, betting on a potential downturn.
However, the broader outlook remains positive. If buyers can maintain momentum, BTC could still push toward $96,000, catching short sellers off guard.
Current market indicators — such as the funding rate (FR) remaining negative — suggest that bullish forces may be gearing up for a short squeeze.
Given the strong investor sentiment and the rising number of short positions, Bitcoin could break above $96,000 sooner than many expect.
On Binance, over 60% of traders are shorting BTC/USDT on the 4-hour chart. So what about the long traders? They’ve been hit hard, with nearly $1 million in liquidations as traders took profits after BTC bounced back above $95,000.
However, since February, $96,000 has proven to be a nearly unbreakable wall. With so many short positions currently open, could a short squeeze push Bitcoin beyond this key level?
Bitcoin Is Entering a Critical Zone
At the start of February, Bitcoin got stuck in a loop between $98,900 and $93,500, getting pulled back every time it crossed above $95,000. But this time, the situation feels noticeably different.
Previously, price movements were mostly driven by macroeconomic fear and panic.
Now, Bitcoin has surged to $95,000 following a much stronger bullish rally, breaking through previous resistance zones. In short, many holders are now in profit and have fewer reasons to sell off.
The HODL season may be back. According to on-chain data, Bitcoin’s Realized HODL Ratio (R-HODL) has just hit its highest level in two months.
The increase in the R-HODL ratio suggests that the market is shifting into accumulation mode, meaning holders are storing their Bitcoin and are in no rush to sell.
Additionally, around 30,000 new BTC addresses were created on April 23, right as Bitcoin was fluctuating around $93,727.
Overall, it’s clear that people are accumulating BTC, with no real signs of selling pressure.
This clearly shows that investors are expecting a larger rally ahead. That’s why this pullback feels more like a shakeout rather than a full-blown crisis — it’s flushing out weak hands before the real party starts.
A Short Squeeze Might Be Exactly What Bitcoin Needs
At the moment, Bitcoin is trading just below $95,000, and many are speculating about a possible correction.
The late-February rally showed early signs of strain. Short traders entered the market aggressively, betting on a potential downturn.
However, the broader outlook remains positive. If buyers can maintain momentum, BTC could still push toward $96,000, catching short sellers off guard.
Current market indicators — such as the funding rate (FR) remaining negative — suggest that bullish forces may be gearing up for a short squeeze.
Given the strong investor sentiment and the rising number of short positions, Bitcoin could break above $96,000 sooner than many expect.
