Analyst: Bitcoin Nears New High but Traders Still Show Bearish Sentiment, Surge in Shorts Could Trigger Potential "Short Squeeze"

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 still show bearish sentiment, with the long/short ratio significantly decreasing from 1.223 (bullish dominance) to 0.858 (bearish dominance).

Data shows that open interest for short positions has risen from $32 billion to $35 billion, indicating an increase in funds flowing into bearish positions, reflecting a lack of confidence in Bitcoin's sustained upward movement. Currently, Bitcoin is still oscillating in the $100,000 to $110,000 range. Technical indicators such as RSI are showing bearish divergence, while traders in this range are utilizing 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 through its all-time high, triggering forced liquidation points and stop-loss orders for shorts, it could rapidly increase buying pressure, thereby driving the price further up.