Bitcoin Jumps 24% as Analyst Links Rally to Binance Short Squeeze, Flags Pullback Risk

Bitcoin’s 23.8% weekly surge may face a test as derivatives-driven buying loses momentum, with CryptoQuant analyst BorisD pointing to short liquidations on Binance futures as the main force behind the rally.

Bitcoin was trading at $77,754 at the time of writing. BorisD said the advance has not been led primarily by spot buying, raising the prospect of a pullback if spot demand does not strengthen as forced buying subsides. 

The pressure in derivatives markets was reflected in Binance’s Short Squeeze indicator, which reached 6.94 — its highest reading since November 2024.

According to BorisD, short sellers closing their positions generated forced purchases that helped propel Bitcoin higher. That leaves the next phase of the move dependent on whether spot-market buyers can sustain demand once the liquidation-driven momentum fades. 

Source: CryptoQuant