---
title: "Bitcoin Short Squeeze Odds Fade as $109,000 Forms a New Focus"
url: https://diffcoin.com/bitcoin-short-squeeze-odds-fade-as-109000-forms-a-new-focus/
description: "Key points:Bitcoin bulls face multiple resistances as price stays stuck, but some see upside liquidity sparking a short squeeze.BTC price forecasts…"
published: 2025-08-05
updated: 2025-08-05
author: "Mila"
site: "Diffcoin"
---

# Bitcoin Short Squeeze Odds Fade as $109,000 Forms a New Focus

**Key points:**

- Bitcoin bulls face multiple resistances as price stays stuck, but some see upside liquidity sparking a short squeeze.
- BTC price forecasts continue to see lower levels closer to $109,000 in the short term.
- Volatility is all but guaranteed to return, and traders now need “patience.”

Bitcoin (BTC) struggled to hold $113,000 after Tuesday’s Wall Street open as analysis expected new lows.

![Bitcoin Price, Markets, Market Analysis](https://s3.cointelegraph.com/uploads/2025-08/01987aa8-0d90-7aad-a05f-77fd43af4888)

*BTC/USD 1-hour chart. Source: Cointelegraph/TradingView*

## $109,000 area becomes new BTC price target

Data from Cointelegraph Markets Pro and TradingView showed BTC price action wedged between areas of high order-book liquidity.

Room for movement was thus limited, and short-term forecasts favored further downside next.

“$BTC is going lower before it goes higher,” trading resource Material Indicators summarized in a post on X.

*BTC/USDT order-book liquidity data with whale order volume. Source: Material Indicators/X*

An accompanying chart of BTC/USDT order-book liquidity on largest global exchange Binance revealed a lack of significant bid support above $110,000.

Continuing, onchain analytics firm Glassnode eyed the cost basis of recent Bitcoin buyers, likewise suggesting that the area around old all-time highs could provide a BTC price floor.

“For $BTC, the airgap between $109K–$116K is gradually being filled on dips. The staircase pattern points to steady investor engagement over the past month,” it explained on the day.

> “So far, we see limited distribution from the $118K–$120K range, suggesting these holders are opting to hold through.”

*Bitcoin cost basis distribution heatmap. Source: Glassnode/X*

Not everyone was concerned about a more significant BTC price dip.

Analyzing liquidity, popular X account TheKingfisher stressed the allure of overhead asks.

“Look at $BTC – almost 70% of liquidations are shorts sitting above us,” part of an X post read alongside a chart of crypto long and short distributions.

> “That means there’s a massive pool of fuel waiting to be gobbled up. Institutions love playing with these liquidity hotspots. We’re watching for that flush.”

*Crypto long/short liquidation distribution as of Aug. 5. Source: TheKingfisher/X*

## Bitcoin volatility “on the horizon again”

Popular trader Daan Crypto Trades meanwhile eyed resistance in the form of the 200-period simple (SMA) and exponential (EMA) moving averages on 4-hour timeframes.

***Related:*** ***Bitcoin treasuries add 630 BTC while ETFs shed $300M as price ranges***

“Bulls need to break this region to be back in control and start aiming for higher,” he argued.

*BTC/USD 4-hour chart with 200-SMA, EMA. Source: Cointelegraph/TradingView*

Crypto trader, analyst and entrepreneur Michaël van de Poppe said that regardless, rangebound BTC price behavior would not last.

“Patience is required when it comes to $BTC. No breakout upwards, no breakout downwards,” he concluded Tuesday.

> “Volatility slowing down, which means a big move is on the horizon again.”

*BTC/USDT 4-hour chart with RSI data. Source: Michaël van de Poppe/X*

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

[Source link](https://cointelegraph.com/news/bitcoin-analysis-warns-btc-price-going-lower-first-114k-slips?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound)