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Is Bitcoin set for a short squeeze? Analyst points to Binance data

Crypto news today: Bitcoin holds firm above $93K, fueled by record ETF inflows and bullish forecast

  • 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 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…

Click Here to Read the Full Original Article at CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison…