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Bitcoin teases short squeeze as sellers defend $108K level

Bitcoin is at a pivotal decision zone, with liquidity building on both sides of the current price. Analysts predict a potential rally to new highs, with the $109,000 level being key for upward momentum.

Bitcoin teases short squeeze as sellers defend $108K level

Bitcoin is at a critical juncture as sellers attempt to defend the $108,000 level, while a significant short squeeze remains a possibility . Bitcoin's price hit $107,000, with analysts predicting a breakout to new highs as liquidity builds around $109,000 .

According to analysis, sellers protecting the $108,000 level could lead to a “brutal” short squeeze . Data from Cointelegraph Markets Pro and TradingView showed BTC/USD reversing gains made into the weekly close, down 1.1% . Traders expected volatility with hours to go until the monthly and quarterly closes, while exchange order-book liquidity grew .

Trading firm QCP Capital noted that with BTC spot edging toward $108k, a build-up in leveraged longs is beginning to be seen as perpetual funding rates flip from flat to positive across major exchanges . Positioning appears to be chasing the move, as participants lean into directional bets ahead of quarter-end .

Popular trading account TheKingfisher reported that below the current price, there is a cluster of long liquidations around $106k-$107k, but above the current price, there is a huge wall of short liquidations immediately above the current price, peaking fiercely around $108k-$108.5k . A short squeeze can be “brutal” if the price pushes through $107.5k .

On the other hand, there are also liquidity clusters in the $108,000–$109,000 region, indicating the presence of potentially significant short positions . A breakout above $109,000 could initiate a sharp short squeeze, perhaps driving prices higher toward the current all-time high in the $111,000 price range .

Several analysts are bullish on Bitcoin's prospects of hitting a new all-time high in the near term . Bitcoin's price hovers around $107,000, showing technical strength as BTC's chance of rising to new all-time highs appears to be increasing .

However, Bitcoin apparent demand flips negative as sell pressure outweighs new buyer activity . This suggests that supply from miners and long-term holders is outpacing the inflow of new buyers .

According to Changelly, Bitcoin's value is predicted to increase by 17.86% and reach $127440.58 by July 01, 2025 .