Bitcoin is showing early signs of a potential rebound after finding strong support around $108,000.
Market data suggests that a major short squeeze could be forming, as large liquidation clusters are building up above the current price level.
According to Crypto Rover, cumulative short liquidations now exceed $14 billion across major exchanges, compared to just $260 million in long liquidations. This imbalance could trigger a sharp upside move if Bitcoin begins to reclaim key resistance levels.
At the time of writing, Bitcoin trades at $108,484, consolidating near the lower boundary of a critical technical zone.
Key Technical Levels
Market analyst Rekt Capital noted that Bitcoin is currently testing the 21-week exponential moving average (EMA), which has acted as a crucial mid-term resistance in previous cycles. The price is hovering just above the historical demand area near $108,000, a region that needs to hold for bulls to maintain momentum.
Rekt Capital emphasized that maintaining this zone as support is essential for Bitcoin to form a new higher low and eventually challenge the 21-week EMA again.
Sideways Accumulation Phase
Meanwhile, Michaël van de Poppe analyzed the monthly chart, describing the current setup as a period of “sideways consolidation” with no clear top or bottom in sight. He believes Bitcoin is preparing for its next major breakout, noting that the long-term structure still supports a continuation of the broader bull trend.
“The chart shows no peak, no bottom – just consolidation before the next breakout upwards,” van de Poppe wrote.
What to Watch Next
If Bitcoin manages to reclaim $111,000, a wave of short liquidations could accelerate the price higher, possibly testing the $115,000–$120,000 range. Conversely, failure to hold above the $108,000 support could expose the market to further downside pressure toward $105,000.
The growing volume of leveraged short positions has increased the likelihood of a volatile move in either direction, with analysts closely monitoring for signs of breakout confirmation.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/market/bitcoin-price-outlook-massive-short-squeeze-could-ignite-a-sharp-rally/