Possible Bitcoin short squeeze could push BTC price to new heights

This week in the world of cryptocurrency, fear, uncertainty, and doubt (FUD) have taken hold as volatility rocks the market and many cryptocurrencies experience a crash. Bitcoin (BTC) has not been immune to this bearish sentiment, setting the stage for a potential short squeeze for the digital asset.

The derivatives market has seen open interest (OI) in Bitcoin reach record highs, standing at $34.5 billion with BTC priced at $66,224 as reported by CoinGlass on June 15. This high level of speculative demand for both long and short positions has created significant imbalances that could lead to short squeezes, particularly around the $72,000 price resistance level.

Looking closer, there have been over $2 billion in Bitcoin short liquidations, with some reaching levels as high as $73,000. This makes the $72,000 to $73,000 range a probable target if a short squeeze were to occur.

Professional trader and analyst Credible Crypto has identified further indicators pointing towards a potential short squeeze. In a recent post, the analyst highlighted a bullish divergence with the cumulative volume delta (CVD), suggesting that buy orders are being consumed and a supply shock may be on the horizon.

However, it’s important to note that technical analysis and liquidation data are not definitive proof that a short squeeze will materialize. The cryptocurrency market is ever-changing as traders reassess their positions, adjust their exposures, market orders, and open interest, ultimately influencing the likelihood of high volatility events and shifting trends.

Disclaimer: The information provided should not be considered as investment advice. Investing in any market is speculative and carries inherent risks to your capital.