Analysts: Bitcoin approaches new highs but traders still show bearish sentiment, which may trigger a potential short squeeze.

Odaily News Coindesk analyst Oliver Knight stated that although the trading price of Bitcoin has surpassed $110,000, approaching a historical high, traders still exhibit bearish sentiment, with the Long-Short Ratio significantly declining from 1.223 (long positions dominant) to 0.858 (short positions dominant). Data shows that the open interest of short positions has increased from $32 billion to $35 billion, indicating that funds flowing into bearish positions are on the rise, reflecting a lack of confidence in the sustained pump of Bitcoin. Currently, Bitcoin remains oscillating within the $100,000 to $110,000 range. Technical indicators such as RSI show bearish divergence, and traders are utilizing short-term strategies for arbitrage within this range. The increase in short positions also presents a potential bullish scenario in the market: a short squeeze, where if Bitcoin breaks through its historical high, it could trigger the liquidation points and stop loss levels of short positions, quickly increasing buying pressure and driving the price further up. (CoinDesk)