Bitcoin Potential Bottom Signals Short Squeeze Ahead

• Buy-sell pressure data points to a potential Bitcoin bottom in the bullish zone.

• Bitcoin outperforms gold with an 8% gain, drawing capital from traditional safe havens.

• Funding rates at 0.0067% and liquidation clusters below spot price heighten short trader risks, per CryptoQuant and CoinGlass data.

Bitcoin market bottom signals emerge amid selling pressure—explore buy-sell data, ETF flows, and short squeeze potential. Stay informed on BTC’s next move. (148 characters)

Is Bitcoin Forming a Market Bottom?

Bitcoin market bottom indicators are flashing early signs of stabilization following the October 11 decline. Alphractal’s buy-sell pressure analysis shows BTC lingering in the green bullish zone, nearing but not yet entering heightened selling territory. This suggests sellers might be overextended, with relief buying and positive funding rates potentially triggering a rebound.

Trading at $107,510, Bitcoin has faced persistent downward pressure since the recent drop, but emerging data from on-chain metrics indicates a possible reversal. Unlike past cycles with explosive demand, the 2025 environment appears more measured, leaving room for future upside.

What’s Driving the Current Market Divergence?

Market participants show mixed behaviors, with institutional and spot investors diverging in sentiment. U.S. spot Bitcoin ETFs recorded outflows of $101.3 million, while retail spot trading saw $165 million in sales, according to SosoValue figures. This marks a shift from the prior day’s net inflows of $477.19 million for institutions and $435.37 million for spot buyers.

Analyst Joao Wedson from Alphractal highlights the subdued 2025 cycle compared to 2017 and 2021 peaks, noting, “The 2025 cycle looks very different — it shows weaker, more subdued demand, nothing close to the euphoric spikes we witnessed in the past.” This restraint could signal untapped potential for later growth phases.

Compounding this, Bitcoin’s performance against gold stands out. The BTC/Gold ratio climbed 8% in the last 24 hours, even as gold endured its sharpest daily drop in over a decade. Farzam Ehsani, Co-founder and CEO of VALR, attributes this to investor risk appetite, stating in communications, “Investors taking risk off the table in one asset are likely to seek asymmetric upside in another, especially one still perceived as undervalued and under-owned relative to its potential.”

Source: Alphractal

Source: Alphractal

These trends underscore a broader rotation in capital, where Bitcoin’s scarcity and growth narrative attract funds fleeing declining assets like gold. As institutional participation matures, such divergences often precede consolidation phases before renewed buying.

Source: SosoValue

Frequently Asked Questions

Is Bitcoin’s buy-sell pressure indicating a true market bottom in 2025?

Alphractal’s buy-sell pressure metrics place Bitcoin in a bullish zone, suggesting a potential bottom formation. While approaching selling pressure territory, subdued demand compared to prior cycles hints at sustainable growth ahead, without the volatility of past euphoric phases. (47 words)

How might a short squeeze impact Bitcoin’s price trajectory?

A short squeeze could drive Bitcoin higher by forcing short positions to cover amid rising prices, especially with liquidation levels clustered below current trading spots. Positive funding rates at 0.0067% from CryptoQuant data amplify this risk for bears, potentially sparking a quick rally to $130,000 or more by early 2026. (48 words)

Source: CoinGlass

CryptoQuant’s funding rate data further supports this, with rates flipping positive to 0.0067% from negative territory, aligning retail, institutional, and derivatives flows against shorts. Ehsani’s outlook reinforces optimism, projecting BTC at $130,000–$132,000 by Q1 2026, barring macroeconomic disruptions.

The liquidation heatmap from CoinGlass reveals dense short positions below $107,510, positioning the market for a squeeze if buying resumes. This confluence of factors—capital shifts, ETF dynamics, and derivative signals—points to a resilient Bitcoin amid broader caution.

Key Takeaways

• Bitcoin bottom signals strengthen: Alphractal’s buy-sell pressure in the bullish zone suggests sellers are nearing exhaustion, with subdued 2025 demand setting up for later rallies.
• Capital rotation favors BTC: An 8% BTC/Gold gain highlights investor preference for digital assets over traditional havens like gold, which saw a decade-worst drop.
• Short squeeze potential rises: Positive funding rates and sub-spot liquidations increase risks for bears, potentially driving BTC toward $130,000+ in early 2026.

Conclusion

As Bitcoin navigates this potential market bottom, buy-sell pressure and funding rate shifts underscore Bitcoin market bottom formation amid institutional divergence and gold outflows. With expert insights from Alphractal and VALR pointing to undervalued potential, BTC’s trajectory looks upward. Investors should monitor ETF flows and liquidation data closely for the next bullish catalyst, positioning for sustained growth in 2025 and beyond.