$BTC Bitcoin's Silent Dance – The Story of Liquidity and Short Positions

Sometimes markets behave like a theater stage. Lights go out, curtains open, and everyone holds their breath at an unexpected move. That's exactly what Bitcoin is doing these days.

As we've pointed out for three days, the price swept through the equal lows. It dropped to the $74,000 level, clearing accumulated liquidity – a complete stop-loss hunt. With panic selling and the liquidation of long positions, the price quickly recovered, returning to $77,000.

Open interest (OI) fell sharply during this rise. Short positions accumulated last week were either liquidated or closed in panic. Perps CVD and Spot CVD are recovering; indicating that short-term fuel has kicked in. Ironically, the shorts that added to the lows became their own fuel, pushing the price upwards. Exactly the scenario we predicted.

But there's a critical distinction here:

Real demand hasn't kicked in yet. Both CVDs (Current Economic Viable Rates) are still in negative territory. This rise is largely the result of a short squeeze – a classic fuel-depletion scenario. What will push the price up when the fuel runs out?

For a sustained break above $80,000, CVDs need to turn positive and open interest needs to rise along with the price. Otherwise, this could only be a temporary relief.

My short-term expectation:

The squeeze isn't over yet. There's a high probability it will also sweep away the liquidity accumulated above $78,000. After that is cleared:

- If buyers (real demand) don't stand behind it → I expect a pullback after $78K.

- If buyers step in and support it with volume → an 80K flip is possible, followed by a new attack towards the 83-84K liquidity zones.

Bitcoin reminds us once again: The market dances most intensely in that gray area between fear and greed. Shorts have fueled the market, liquidity has been cleared… Will the stage now be left to real buyers, or will a new cycle begin?

This isn't just an analysis; it's listening to the pulse of the market. What do you think? Will real demand emerge, or a new sweep?

Share your opinions in the comments. Write your own thoughts, don't copy. This is Gate Square – we're waiting for original ideas.

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Stay tuned.
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⚠️ Not financial advice.