Analyst: Bitcoin Nearing All-Time High But Traders Still Showing Bearish Sentiment, Surge in Short Positions Could Trigger Potential "Short Squeeze"

By: theblockbeats.news|2025/07/03 15:36:42
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BlockBeats News, July 3rd, Coindesk analyst Oliver Knight stated that despite Bitcoin's trading price surpassing $110,000 and approaching its all-time high, traders are still showing bearish sentiment, with the long/short ratio significantly declining from 1.223 (favoring longs) to 0.858 (favoring shorts).

The data shows that open short positions have increased from $32 billion to $35 billion, indicating an inflow of funds into bearish positions, reflecting a lack of confidence in Bitcoin's continued upward trend. Currently, Bitcoin is still oscillating between $100,000 and $110,000. Technical indicators such as RSI show bearish divergence, while traders in this range are using short-term strategies for arbitrage.

With the increase in short positions, there is also a potential bullish scenario in the market: a short squeeze. If Bitcoin breaks above its all-time high, triggering forced liquidation points and stop-loss orders for shorts, it could rapidly increase buying pressure, further driving the price up.

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