Bitcoin Hits $94K – Could a Long Squeeze Be Looming? Here’s What We Think!

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  • Bitcoin‘s Long Positions Skyrocket Past $90k
  • Crypto May Face Long Squeeze As Demand Peaks and Price Momentum Stalls

Ah, Bitcoin – the digital rollercoaster that never stops thrilling the masses. This past week, our dear cryptocurrency friend managed to zip past $95k with all the enthusiasm of a kid in a candy store, only to now be stuck in a holding pattern at around $94k for the last two days. A little anticlimactic, don’t you think? But the true thrill-seekers (read: investors) are piling into long positions like there’s no tomorrow, with expectations that $100k is just a mere hop, skip, and a jump away. 🚀

And speaking of “longs,” Bitcoin’s Funding Rate has flipped back into the positive, which means the bulls are firmly in control… at least for now. But here’s the twist: this surge in demand for long positions could be the prelude to a dramatic plot twist. A long squeeze, anyone? 😏

Now, before you get too comfortable thinking Bitcoin’s heading straight for the moon, let’s consider this – while Open Interest increased by $1 billion in just 24 hours (yes, you read that right), the price has stayed stubbornly stuck at that $94k range. That’s a little like a car revving its engine but never quite reaching top speed. 🏎️💨

Meanwhile, Bitcoin’s Spot Cumulative Volume Delta (Spot CVD) is sitting in negative territory, and, as the old crypto adage goes: when the CVD heads south while Open Interest heads north, the buyers are getting weak in the knees. The more they pile on longs, the less buying pressure there is to sustain the price. A recipe for disaster? Could be. But hey, what’s a little volatility between friends? 🤔

Enter stage left: the ominous long squeeze. According to Alphractal, the current market conditions are ripe for a sudden and sharp drop in Bitcoin’s price. Imagine the panic as traders, filled with misplaced optimism, scramble for the exits, while the bears get all jittery. A classic drama, if you ask me.

If the squeeze does materialize, we could see Bitcoin’s price tumble below $90k faster than you can say “HODL.” But wait! Before you panic and sell your dogecoin stash in a fit of despair, there’s hope yet. Some faint glimmers of optimism appear in the form of the short-term holder realized profit/loss ratio. This little number just hit +1.2%, a sign that some short-term holders might be feeling pretty darn good about their gains. Historically, this has marked the beginning of a price recovery – or, at least, the calm before the next storm. 🌩️

With short-term holders making a profit, they might just provide the stability the market needs to avoid a full-on panic. No one wants to be the person holding the bag when the music stops. So, if Bitcoin can reclaim $95k and make a run at $96k, we could avert disaster. For now. But as we all know, in crypto, anything can happen. And usually does. 😅

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2025-04-29 02:18