Bitcoin is on the verge of a historic move as it approaches the all-time high, surging above the $71,000 mark just yesterday. This breakthrough has ignited optimism among analysts, who expect prices to rise further in the coming weeks as the U.S. elections draw near—a historical phase marked by increased volatility and market shifts.
Important data from CryptoQuant shows Open Interest has reached $22.6 billion, with half of these positions held by bears. If Bitcoin continues to rise, this setup creates a high risk of short liquidations, potentially accelerating buying pressure as prices rise above $71,000.
As growth momentum builds, the next few days will determine whether BTC can maintain the upward trend or if the consolidation phase below the all-time high will continue. Investors are closely watching these price levels, as a confirmed breakout could signal new highs for Bitcoin. At the same time, a stall could suggest that further consolidation is needed before a larger move.
Bitcoin Bears are facing serious trouble
Bitcoin short sellers are currently at high risk of forced liquidations as significant short position liquidity still hangs above the $71,000 threshold. According to top analyst and macro investor Axel Adler, this scenario could ignite a powerful rally if short positions begin to liquidate en masse, creating momentum to push BTC past the all-time high. Adler shared a CryptoQuant chart on X, noting that Bitcoin Open Interest has surged to $22.6 billion, with half of these positions held by short sellers.
In his analysis, Adler emphasizes that the current market structure is preparing for a significant short squeeze. "There is no need to hesitate in liquidating short positions to push prices up," Adler states, suggesting that a series of liquidations above $71,000 could serve as a launchpad for Bitcoin, taking it to unprecedented price levels. This process, known as a "short squeeze," occurs when holders of short positions with excessive leverage are forced to close their positions, leading to large buy orders that drive prices even higher.
If this scenario unfolds, Bitcoin will not be the only coin to benefit. As BTC leads the market, a rally beyond previous highs could signal a new cycle for the entire cryptocurrency space. Altcoins often follow Bitcoin's lead, and the ripple effect could drive a comprehensive rally, with new highs across many assets.
Investors are closely watching, as such moves could renew interest and investment in the cryptocurrency market, attracting retail and institutional capital. With BTC on the brink of price exploration, the coming days could play a crucial role in shaping the market's direction.
BTC Testing Key Supply
Bitcoin is testing the supply zone at $71,200, reaching the final resistance level before hitting the all-time high. The bulls appear to be in tight control, with price action signaling the potential for a breakthrough above this level in the coming days. Breaking and holding above the $70,000 mark remains crucial. This psychologically significant level reinforces bullish sentiment, encouraging more buyers to enter the market.
However, a temporary pullback to gather liquidity at lower demand levels would benefit Bitcoin's bullish trend. A drop to $69,000, or even down to $66,500, would still align with a bullish outlook. It could attract further interest and create a healthier base for the next rally. These areas would allow Bitcoin to gather liquidity before generating a stronger push towards new highs.
Traders are monitoring, knowing that a sustained move above $71,200 could pave the way for price exploration beyond the all-time high. A successful breakout could trigger new momentum across the market, creating a broader bullish rally with Bitcoin leading the way.