$1B Short Squeeze Looms as Bitcoin Price Nears the $100K

Bitcoin price (BTC) has shattered another milestone, surging past $97,000 and gaining 3.4% in the last 24 hours, bringing its current price to $98,748.72

This extraordinary rally was fueled by a confluence of factors. These include regulatory clarity, increasing market optimism, and growing institutional adoption.

A positive uptick in multiple factors facilitated the extraordinary rally, including regulatory clarity, market optimism, and institutional adoption.

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With the Bitcoin price edging closer to the much-awaited $100K mark, traders are excited about the world’s biggest cryptocurrency hitting that big figure.

Data Suggests Bitcoin Price Entering Early Bull Market Phase

Crypto analyst Ki Young Ju says Bitcoin’s bull market is well underway as indicator readings resemble those seen in 2020.

The CryptoQuant BullBear Market Indicator signals a movement of the Bitcoin price from a bearish period to an early bullish cycle, going from the blue regions (negative values) to the orange regions (positive values). Similar patterns preceded price jumps in previous cycles.

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The Bitcoin price consolidates before breaking into a potential rally, further adding to the bullish sentiment displayed in the overlayed price curve. The analysis compares data to 2020 and suggests another long-term bullish trend is likely, based on cyclical behavior and historical market behavior.

$1B Shorts on Verge of Liquidation as Bitcoin Approaches $100K

It is a potentially big event in the Bitcoin market, says Ash Crypto. If Bitcoin’s price blows past $100,000, there’s around $1.06 Billion in short positions that would be liquidated.

This looming event presents a great opportunity for a massive short squeeze, where a swift run-up in price could lead even more short-sellers to cover their position. Consequently, Bitcoin would effectively get a boost.

The Bitcoin Exchange Liquidation Map shows a growing risk for short-leveraged position holders.

As the Bitcoin price approaches this key threshold, the potential for an outbreak of cascading liquidations would trigger that kind of heightened volatility.

Next Profit-Taking Target: S2F Reversion Expected to Reach 3.0 Soon

Darkfost reiterates that the S2F (Stock-to-Flow) reversion metric has hit 2.5. An S2F value of 2.5 usually signals an optimal time to take part of the profit from bitcoin investments.

The chart shows when similar levels have appeared before short-term price pullbacks on a bull market. This would be a good time to protect gains.

Note that this doesn’t mean the current bull cycle has peaked. It shows us that the market is picking up and that bullish momentum is still around.

The next critical profit-taking level may occur when the S2F reversion metric reaches 3.0, suggesting elevated market activity, Darkfost adds.

This data-driven approach gives insight into the value of utilizing the proven metrics to spend through the market cycles efficiently and maximize revenue in Bitcoin’s price upswing.

Bitcoin Price Path to $100K: Will It Happen This Week?

The Bitcoin price inches closer to the psychological $100,000 barrier. At press time, it was trading above $97,000, posting yet another week of profits.

The Ichimoku Cloud is still holding above it, and price action is strong. Since it has consolidated in the $93,500-$97,500 range, it is highly likely to break out to the upside targets of $100,000 and $110,000.

The bullish sentiment is firmed up by the accumulation/distribution line (3.6M) pointing high.

The next target if the Bitcoin price breaks above $100,000 is $110,000. If it does not hold the $97,000 support level, the retracement could go as low as $93,500, where stronger buyers may enter.