🚨 Bitcoin Squeezes Shorts as Liquidity Thins Above Resistance
Bitcoin is entering a danger zone for bears. Thin liquidity above resistance, rising open interest, and positive funding rates suggest a potential short squeeze if price pushes higher.
Trend Analysis
$BTC spent the last 24 hours compressing just below a key resistance zone, while derivatives data quietly heated up. Open interest climbed alongside price — a classic signal that traders are adding leverage, not closing positions.
Funding rates flipping slightly positive indicates longs are willing to pay, but not euphoric yet. This is critical: it suggests shorts are still crowded, especially those positioned for a rejection at resistance.
Order book data shows weak sell-side liquidity above current levels, meaning even a modest market buy can trigger cascading liquidations. Historically, this setup favors fast upside expansions, driven less by spot demand and more by forced short covering.
At the same time, spot selling pressure remains muted. Long-term holders are not distributing aggressively, and ETF-related flows have stabilized — removing a major downside catalyst.
If $BTC clears resistance with volume, the path upward could be thin and violent, catching overleveraged shorts offside.
⚠️ Risk Warning
This setup cuts both ways. A failure to break resistance could trigger a long flush, especially if funding overheats quickly. High leverage environments amplify volatility — manage position size and respect invalidation levels.
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