Bitcoin Liquidity Buildup Points to Potential Short Squeeze as Market Dominance Grows

Analysis of Bitcoin’s order-book dynamics reveals a significant liquidity buildup above the current spot price.
This pattern is often interpreted as a precursor to a potential short squeeze, setting the stage for potentially rapid upward price movements.
Key technical price levels are now in focus, with clusters of liquidity identified at $115,000 and $120,000 acting as major thresholds that could dictate near-term market direction.
Concurrently, Bitcoin’s market dominance, measuring its share of the total cryptocurrency market value, has rebounded significantly.
It has gained approximately 0.5%, approaching the 60% mark, indicating a shift of capital flowing away from altcoins and back into Bitcoin.
Analysts examining these liquidity conditions suggest a large-scale short squeeze appears increasingly likely under the current market structure, possibly driving swift price appreciation.
Market participants are advised to closely observe these key price levels and liquidity zones as heightened volatility may materialize.