Crypto analysis shows that Binance short squeeze driving Bitcoin price movements, and historical patterns show that as traders face sharp escalations in liquidation.
Understand second-hand squeezing pressure
On May 26, 2025, CryptoQuant shared an insightful analysis that highlights the impact of Binance’s short squeeze pressure on Bitcoin price dynamics.
This chart illustrates the price movements of Bitcoin, from April 20 to May 24, 2025, with the short and long pressures of used coins. Critical periods of short squeeze activity are characterized by sharp peaks of pressure, which are associated with a significant increase in price.
Source: Encryption
For example, at a lower defense phase, a brief squeeze in early May pushed the price of Bitcoin from $88,000 to $104,000 in a few days. Another short squeeze signal in mid-May before a Rally to $111,000, Bitcoin’s history was high.
A brief compression occurs when traders are forced to close due to price increases, which triggers a series of buy orders to expand upward momentum. This indicator is especially useful for determining moments when short sellers are under pressure, often causing prices to soar rapidly.
Historical data in the chart show a consistent pattern: a cycle of low volatility followed by repeated squeezing signals that led to a breakout of Bitcoin’s price, which was also observed when Bitcoin reached $70,000 for the ETF approved by $70,000.
A brief squeeze and larger long position indicate a wider breakthrough
As of May 26, 2025, the current market environment is consistent with these historical models. Bitcoin BTC Driven by President Trump’s decision to delay EU tariffs, it recently recouped to $109,000 after falling to $106,800.
However, Binance data suggests that 62% of traders with open BTC positions are short, adding another possibility of a brief squeeze if Bitcoin breaks $110,000.
Source: Xiaodian
Coinglass reported in the past 24 hours that a brief liquidation of $108 million underlined pressure on bearish businessmen. Institutional activities further expand this dynamic, such as the famous James Wynn whale on Super Mobility, which is $75 million in length.
Source: Super Mobile
The broader market environment also supports potential volatility. The crypto fear and greed index is still in the “greed” area, reflecting bullish sentiment, while open interest in Bitcoin futures rose 1.96% to $76 billion.
Coupled with the brief squeeze pressure and macroeconomic uncertainty, such as evolving trade policies, the price of Bitcoin may experience substantial fluctuations.
Traders should focus on tapping this momentum by prioritizing long-term positions: if BTC consolidates stocks above $110,000 and exceeds $110,000 in businesses on Tuesday or Wednesday, showing bullish confirmations (e.g., solid green candles) at prices ranging from $115,000 to $118,000. For shorter matches, scalp is on the long position on the pullback to $108,000, and the tight stagnation price is $106,800 to minimize risk.
Considering the risk of a brief squeeze of price surge, avoid opening short positions this week, as bearish bets may continue if the upward momentum continues.
