Bitcoin Eyes $15B Short Squeeze With 10% Price Jump

Bitcoin Could Trigger $15B Short Squeeze With 10% Price Uptick

Bitcoin is hovering around the $105,000 mark as traders anticipate a potential short squeeze that could liquidate over $15 billion in short positions, according to market liquidity data.

BTC/USD 1-hour chart. Source: TradingView

As of June 8, BTC/USD maintained levels above $105,000, with analysts observing a possible successful support retest — a key signal ahead of the weekly candle close. This recent price action has renewed optimism that the correction phase might be over and a bullish trend could resume.

On the daily timeframe, Bitcoin is showing signs of breaking its two-week downtrend and flipping it into support. One analyst noted that a daily close and successful retest near $106,600 would strengthen the bullish case and suggest continuation of the upward trend.

Bitcoin has already closed a daily candle above its 10-day simple moving average (SMA), which some analysts regard as essential to invalidate the recent bearish sentiment.

Bitcoin exchange liquidation heatmap. Source: Cas Abbe/X

Meanwhile, order book analysis shows significant liquidity clusters forming both above and below the spot price. This setup points to a high probability of a liquidity-driven move. One trader suggested the market is coiling for a breakout that could "grab" the liquidity on either side.

“If BTC pumps 10% from here, $15.11 billion in shorts will be liquidated,” the trader explained. “A 10% drop, on the other hand, would wipe out $9.58 billion in long positions.”

Negative funding rates over the weekend suggest that short positions are piling up, indicating growing bearish sentiment that could be swiftly reversed by a rapid price spike.

BTC/USDT 1-day chart. Source: Cas Abbe/X

A potential upside move could take Bitcoin to $109K–$110K next week, especially if the short squeeze plays out.

In terms of support, $104,400 has emerged as a critical level for the weekly close. Holding above this level would mark the fourth consecutive week of support confirmation, strengthening bullish momentum. If BTC dips further, the $100,000 psychological level remains a key area of interest for building long positions with relatively low risk.

Traders and analysts are now closely watching whether Bitcoin can confirm its support with a strong weekly close and break past the $106,600 mark to reignite the rally toward six figures.