- Bitcoin’s OI has surged as short bets climb.
- With rising HODL sentiment and a surge in new addresses, a breakout above $96k could trigger a short squeeze.
Bitcoin’s [BTC] Open Interest is climbing fast, but not in a good way for the bulls. Funding Rate just turned negative at -0.023%, signaling that short bets are stacking up fast.
Over on Binance, more than 60% of traders are shorting BTC/USDT on the 4-hour chart. Longs? They’ve taken a beating – nearly $1 million wiped out as traders booked profits after BTC’s sprint back above $95k.
But here’s the thing: Since February, $96k has been a wall too tough to break. But with so many shorts in play, could a squeeze finally push Bitcoin through?
Bitcoin walking a tightrope
Earlier in February, Bitcoin was stuck in a boring loop between $98,900 and $93,500 – and every time it peaked above $95k, it got smacked right back down. But this time? The vibe feels way different.
Back then, it was all about macro drama causing panic.
Now, BTC’s climb to $95k comes after a much stronger rally, blasting through old resistance zones. In short, way more holders are in profit now, and they’ve got way less reason to bail at the first sign of trouble.
According to AMBCrypto, HODL season might just be back. Nothing paints the picture better than the on-chain action — Bitcoin’s Realized HODL (RHODL) Ratio just hit a two-month high.
Source: Glassnode
This rising R-HODL Ratio hints that the market’s moving into accumulation mode – meaning holders are tucking their coins away, not rushing for the exits.
And it’s not just the OGs. Around 30,000 shiny new BTC addresses sprang up on the 23rd of April, right as Bitcoin hovered near $93,727.
Put together, old money, new money — everyone’s stacking sats, not selling.
Clearly, they’re expecting fatter gains ahead. That’s why this pullback feels less like a meltdown and more like a classic shakeout — clearing out weak hands and trigger-happy traders before the real party starts.
A short squeeze might be all it takes
At press time, Bitcoin’s slipped 0.39% below its $94,760 opening – and yep, the correction crowd is getting louder.
After all, BTC’s late February rally set a high bar, and some cracks are starting to show. Cue the shorts, betting hard on downside action.
But here’s the thing: If bulls keep flexing, $96k isn’t just possible. In fact, it’s a trapdoor waiting to snap shut on the bears.
And judging by the setup, with the Funding Rate (FR) deep in the red, bulls look more than ready to wreck some short sellers.
Source: CryptoQuant
Big picture? A deep correction looks pretty unlikely for Bitcoin right now.
With holding sentiment running high and shorts piling on weak-hand exits, the stage might be set for a $96k breakout sooner than most expect.
