Bitcoin Enters ‘Disbelief Phase’ – Could Short Sellers Face The Next Squeeze?
After the huge crash on October 10 – which noticed Bitcoin (BTC) contact $102,000 earlier than recovering some losses – some analysts now predict that the highest cryptocurrency could also be on the verge of one other bullish rally because it enters the ‘disbelief part.’
Bitcoin In Disbelief Phase – Trouble For Bears?
According to a CryptoQuant Quicktake submit by contributor Darkfost, Bitcoin seems to be getting into the disbelief part, which will increase the potential of a rebound to the upside. The contributor emphasised the marginally unfavourable funding charge to assist their evaluation.
For the uninitiated, the Bitcoin disbelief part happens when a brand new uptrend begins, however most buyers stay skeptical after a latest correction, doubting that the restoration is actual. During this part, lingering bearish sentiment and brief positions usually act as gas for a stronger rally as soon as confidence returns.
Darkfost acknowledged that buyers’ skepticism towards BTC returning to bullish mode could be gauged by way of BTC funding charges within the derivatives market. Funding charges remained unfavourable at -0.004% on the change for six out of seven days over the previous week, indicating merchants are nonetheless barely bearish.
The probably cause behind merchants’ brief bias is the October 10 crypto market crash that led to a liquidation price $19 billion. Since then, merchants have persistently chosen to brief the market as a substitute of getting trapped in one other worth pullback.
However, the longer BTC stays within the disbelief part, the stronger the potential for an explosive upside transfer turns into. Darkfost added:
If the present uptrend continues to determine itself, the rising pile of brief positions towards it might turn out to be a strong gas for the subsequent leg greater. As these shorts get liquidated, it might drive costs upward, triggering a brief squeeze.
If a brief squeeze occurs, then BTC might shortly rally to main liquidity zones round $113,000 stage, and at the same time as high as $126,000 area, the place vital brief orders liquidations are clustered.
The analyst shared two earlier occasion the place such a sample performed out. In September 2024, BTC fell to $54,000 earlier than surging to a brand new all-time high past $100,000.
Similarly, in April 2025, the flagship digital asset rallied from $85,000 to $111,000, earlier than climbing even greater to $123,000. To conclude, the Bitcoin market could also be on the verge of one other brief squeeze, fueled by buyers’ skepticism.
BTC Investors Need To Be Cautious
Although BTC is giving hints of a looming brief squeeze, buyers ought to nonetheless train some warning earlier than getting into the market in hopes of an immediate turnaround in sentiment. For instance, Bitcoin exercise just lately slumped beneath its 365-day common, elevating fears of a lack of momentum.
That stated, some crypto analysts forecast that BTC is probably going achieved with the worth correction and is ready to surge within the coming days. At press time, BTC trades at $110,814, up 2.8% prior to now 24 hours.
