Another monster Bitcoin short squeeze alert with $16 billion at risk

As the data over the last 30 days visible on the chart suggests, if Bitcoins price continues to climb above the current level, shorts could be forced to unwind rapidly in the $115,000 zone, triggering a short squeeze, trapping late short sellers, and likely driving the price even higher.

In other words, if bulls manage to keep control and drive BTC through resistance, the liquidation pressure could fuel a sharp parabolic run. This setup suggests that Bitcoin is at a critical juncture, with volatility potentially increasing soon.

Bitcoin price movements

Bitcoin managed to climb back over $114,000 on Thursday morning, lifted largely by fresh inflows into spot exchange-traded funds (ETFs).

Indeed, spot Bitcoin ETFs attracted $757 million in net inflows on September 10, marking a third consecutive day of gains.

What‘s more, the rally followed Wednesday’s U.S. Producer Price Index (PPI) reports, which showed that wholesale inflation had slowed to 2.6% year-on-year.

The broader crypto market accordingly felt a slight boost, its total capitalization rising 1.5% to $3.97 trillion from $3.85 trillion the day before, according to .

Whats more, Bitcoin futures open interest also saw a modest gain of 0.75%, climbing to $83.72 billion as per data, while futures trading volumes rose to roughly $53 billion, highlighting institutional and retail participation.