$90K Bitcoin Price Breakout Could Trigger $7B Short Squeeze

Bitcoin (BTC) price traded near $84,500 today, Apr. 17, with bulls reclaiming momentum after last week’s volatility.

Traders now brace for a potential $90,000 breakout, which could liquidate over $7 billion in short positions, according to Coinvo.

BTC has rebounded after briefly dipping to $80,000 in early April. At press time, BTC is up 3.41% weekly and 0.53% over the past 24 hours.

Social Sentiment Flips Bullish Amid Range-Bound Action

Bitcoin’s recent rally has coincided with a shift in trader sentiment. According to crypto analytics firm Santiment, social media activity on Apr. 16 flipped into “bullish territory” for the first time in weeks.

The platform’s sentiment tracker scored 1.973, up from a neutral range below 1.606. Bitcoin had tapped $86,000 before retracing to $83,000, with traders eyeing a reclaim of the $85,000 level. Santiment noted,

“Traders are showing optimism that BTC can regain $90K, which will likely depend on tariff and global economy news as the week progresses.”

The Fear & Greed Index remains in “Fear” territory with a reading of 30/100, reflecting cautious optimism despite the price strength.

$90K Breach Could Trigger Massive Short Squeeze For Bitcoin

CoinGlass data shows that reclaiming $90,000 could liquidate $7 billion worth of BTC short positions.

Coinvo emphasized this risk in a recent X post, stating, “$7,000,000,000 worth of $BTC shorts will get liquidated at $90,000… LIQUIDATE THEM ALL!”

Market watcher, Merlijn Trader shared a similar view, writing that Bitcoin “bounced perfectly off support” while many expected a double-top breakdown. He added,

“Hold above → break $86K → game on. The market loves to fake you out.”

The bullish setup has flipped expectations among traders, with some comparing the current move to previous fake-out rallies that preceded new highs.

Long Entries Eyed Between $75K and $82K

Technical analyst Castillo Trading identified long entry zones in the $75,000–$82,000 range, citing historical volume nodes as key support.

The analyst highlighted several naked points of control (nPOC) — untested volume areas — as potential magnets for price.

Key nPOC levels include $107,877, $104,802, $98,407, and $95,756, acting as resistance if BTC continues upward. Castillo noted in his chart analysis,

“These zones often attract price due to prior untested volume, making them important for directional bets.”

At the same time, the most favorable entries remain below $82,000. The chart suggested that areas around $76,949 and $74,265 may offer rebound opportunities during corrections.

Large Holder Behavior Paints Mixed Picture

IntoTheBlock reported a 29.05% drop in large holder inflows over the past week, suggesting short-term selling pressure.

However, the longer-term view shows accumulation. Large holder inflows rose 465% in the past 30 days and 108% over 90 days, indicating continued interest among institutions.

Meanwhile, a recent unstaking event from the Babylon platform moved $1.26 billion in BTC (14,929 BTC), triggering a sharp dip from $85,164 to $83,500.

The move underscored the outsized influence of large transactions on BTC price volatility.

Gold Parallels Resurface as Bitcoin Price Eyes $155K Target

Despite Bitcoin being down 9.3% year-to-date, some analysts believe BTC mirrors gold’s recent price behavior.

Cryptollica suggested BTC could follow gold’s breakout to set new highs. The analyst posted, “Bitcoin midterm target: $155K,” citing similarities between XAU/USD and BTC/USD charts.

Glassnode’s latest “Week Onchain” report echoed the idea, stating both Bitcoin and gold are performing well amid macroeconomic turmoil. The report stated,

“Gold continues to surge higher… Bitcoin recovered its losses and trades near $85K.”

Glassnode also noted that Bitcoin’s 30% drawdown is modest compared to prior corrections, reflecting improved investor resilience in volatile macro conditions.

Bitcoin’s trajectory remains at a critical juncture. With $7 billion in short liquidations looming at $90K and bullish sentiment returning, the next few sessions could define near-term direction.

Whether BTC follows gold to new highs or tests key support levels again will depend on macro developments, whale behavior, and broader risk sentiment.