Bitcoin has just seen a major flush of bearish leveraged positions, with roughly $736 million in short liquidations. In a market still split over direction, that figure is being watched as an early sign that sentiment may be starting to shift. The article cites analyst Darkfost, who said this was the biggest short squeeze since September 20, 2024, when about $773 million in shorts were liquidated in a single day.
Short buildup left derivatives under pressure
Darkfost argued that even if the latest move higher has been modest, the liquidation size shows how aggressive short-term traders had become on the downside. Funding rates, which often reflect the positioning of shorter-term participants, suggest that these traders still dominate current market structure. That has kept pressure concentrated in derivatives, while spot liquidity has not been strong enough to fully absorb it. If conditions improve, the liquidation process itself can turn into a fast buying wave as stacked short positions are forced out.
That helps explain why crypto rallies often arrive abruptly. The report notes that Bitcoin is again moving toward the $72,000 area. Over the past few months, many traders treated every bounce as another opportunity to short, and that pattern may still repeat in the near term. Still, if price stops fading in the usual way, those leaning against each rally may find themselves caught on the wrong side of a squeeze.
Daily swings above 5% point to a faster market
Short liquidations were not the only signal highlighted. The article also points to rising volatility. After reaching all-time highs, Bitcoin went through two major declines; while the duration differed, the depth of both pullbacks was described as nearly the same. Recently, daily price swings have moved back above 5%, suggesting the market is speeding up rather than remaining stuck in an extended sideways phase.
DaanCrypto said higher volatility is generally preferable to a slow grind lower because local bottoms usually form with large candles and sharp price moves, not dull drift. He added that Bitcoin is trying to reverse with this higher low, while the next week should provide a clearer read on whether that attempt holds.
$98,000 and $102,000 seen as key sentiment levels
The report also says some market watchers believe that if Bitcoin reclaims $98,000 and $102,000, calls for a $150,000 target would likely grow louder while the most bearish forecasts fade. At this stage, the article stops short of calling it a confirmed bull run. Its point is narrower: large liquidations and an upswing in volatility often show up before a meaningful move, clearing out weaker positions on the way. If spot demand starts to reinforce the shift, accumulated short exposure could keep unwinding and feed a sharper upside reaction.