Bitcoin breaks $1T realized cap! A $2B short squeeze lies in waiting

Bitcoin’s 30-Day Active Supply acts like a pulse check for investor sentiment.

Spikes are usually a sign of heightened trading activity during moments of greed or fear, while declines point to calmer phases where fewer coins change hands.

Source: Alphractal

Currently, after weeks of intense movement, Bitcoin has slipped into a quieter mood.

Source: Alphractal

Historically, such cooldowns have preceded sharp market moves, as periods of low activity often reset conditions before the next wave of volatility.

For now, the market seems to be taking a moment.

Billions on the line

A big move may not be far away.

Nearly $2 billion in short positions could be wiped out if BTC reaches $120K, potentially triggering a rapid squeeze as traders rush to cover losses.

Source: X

History shows that such liquidations often fuel rallies, turning quiet times into sudden bursts of volatility. In short, today’s calm may not last long.

Bitcoin’s next breakout could come faster and harder than many expect.