Bitcoin Surges Past $110K as Traders Ramp Up Short Positions Amid Market Uncertainty
Bitcoin (BTC) soared to a fresh record high above $110,000 on Thursday, triggering roughly $500 million in liquidations across derivatives markets. Yet despite the bullish price action, an increasing number of traders are betting on a pullback by opening short positions.
Trading volume climbed 74% over the past 24 hours, with Coinalyze reporting the long-to-short ratio dropping to its lowest level since September 2022 — during the depths of crypto winter. This suggests that many market participants remain cautious or skeptical of Bitcoin’s ongoing rally.
The trend toward aggressive shorting started on April 21, as BTC broke above $85,000. Traders anticipated the breakout would mark a cycle top and expected prices to form a double peak. Contrary to these expectations, Bitcoin pushed through major resistance levels at $97,000 and $105,000 in steady fashion.
Factors behind Bitcoin’s upward momentum include a rebound in U.S. equities following easing trade tensions, increased institutional participation on regulated exchanges such as CME, and a large volume of short positions that are ripe for a potential short squeeze.
While shorting at all-time highs may seem risky, many traders see resistance zones as ideal points to enter shorts with well-placed stop-loss orders above these levels. For example, a short taken near $105,000 could close profitably on small retracements while accepting losses if prices break decisively above $109,000.
Meanwhile, open interest in BTC derivatives jumped 17% in the last 24 hours, far exceeding the 4.8% price increase, signaling that leverage is driving much of the current buying pressure. This raises questions about the durability of this rally compared to earlier moves beyond the $100,000 milestone.
As Bitcoin now pushes past $111,000, market watchers will be closely observing whether the surge in short bets continues or if these positions become fuel for further upside through a classic short squeeze.
Share this content:
