I noticed something interesting in the Bitcoin market right now. The price has rebounded to 78.30K with a 2.71% increase over 24h, which is a good sign after the previous turbulence. But what really intrigues me is the situation of short positions that are building up.

According to on-chain data, about 8 to 9 million BTC are held at costs higher than the current price, creating strong resistance. In the derivatives markets, funding rates are negative, meaning traders pay to maintain their shorts. This is the kind of classic setup that can lead to a violent short squeeze if there’s a real bullish impulse.

Spot demand is starting to absorb the selling pressure, but it’s not yet enough to create real momentum. Options show a drop in interest, implied volatility is contracting, and everyone is protecting themselves to the downside. Key levels to watch: support around 65 500$ and significant liquidity above 69 000$.

With this concentration of shorts, a short squeeze could really change the game if the market finds its bullish pace. For now, traders remain aggressively cautious as they approach the holidays. We’ll see how it evolves.