- Bitcoin is nearing $1 billion in short liquidations, with potential for a massive rally.
- Breaking $98,000 resistance could push Bitcoin towards $101,000 and trigger a short squeeze.
- Altcoins set to benefit as Bitcoin dominance spikes, with Solana and Injective leading.
Bitcoin is getting close to a massive short squeeze, with liquidations nearing a huge $1 billion.
If Bitcoin moves up toward the $100,000 mark, short-sellers could face major losses, and this might kick off a market rally.
Traders Flip to Shorts, Setting Stage for Squeeze
Over the past weeks, an imbalance has formed. Most traders were initially betting prices would go up, but they switched to betting prices would go down (flipped to shorts) as Bitcoin had a hard time moving higher.
Now, this change could prepare for a sharp price surge, which would jolt those betting against the market.
Related: Crypto Market 2025: Analysts Say Bull Cycle May Be Just 100 Days Away
BTC’s Next Move: Analyst Targets $100K and Above
According to an analyst, if Bitcoin breaks above key resistance at $98,000, the price could quickly jump to $101,000 or even higher. This surge could trigger a massive short squeeze, with liquidations from those betting against the market—possibly reaching $800 million at $101,000.
If Bitcoin climbs to around $100,000, a minor pullback could occur before surging through key resistance points at $103,000 and $105,000. However, Bitcoin could keep going even higher, with liquidations helping to push the price up.
The key takeaway is that the liquidations aren’t concentrated at higher levels anymore; they’re now sitting around $100,000 to $102,000. This means once Bitcoin crosses those levels, momentum could quickly drive the price toward $108,000 and even further.
Altcoins Set to Ride Bitcoin’s Potential Rally
This shift is important for altcoins as well. Bitcoin dominance may see a brief spike as the market tests new highs, but once Bitcoin faces a minor pullback, money will likely flow back into altcoins.
Total 3, which tracks altcoin performance, has already bounced back from an important zone, and breaking through this zone could trigger major altcoin movement. The real opportunity is with altcoins, as Bitcoin’s rise is likely to be followed by a bigger rally in altcoin markets.
Related: Four Utility Altcoins to Rally in These Final Bull Run Months
Top Altcoins to Watch: SOL, INJ, ADA, AVAX, RUNE
According to the analyst, now is a good time to accumulate Solana (SOL) as liquidations sit around $200.
Injective (INJ) might soon break out, leading to a short squeeze towards $20-$21.
Cardano (ADA) and Avalanche (AVAX) are also showing trend breaks. Thorchain (RUNE) presents a strong risk/reward trade, with the price possibly reaching $2-$4.
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