The post Bitcoin Analyst Warns of Potential BTC Short Squeeze in Liquidity Hunt appeared on BitcoinEthereumNews.com.

Key Notes Technical analysis identifies two major liquidation zones at $116,800 and $119,000 that could serve as price magnets for Bitcoin’s next move. The cryptocurrency successfully tested the 50-day exponential moving average support level, establishing a foundation for potential upward momentum. Bitcoin’s correlation with the S&P 500 remains strong, making both assets sensitive to macroeconomic developments and recession concerns. Bitcoin BTC $115 477 24h volatility: 1.6% Market cap: $2.30 T Vol. 24h: $32.75 B price has once again experienced high volatility events in a short period of time, flirting with its previous all-time high just to retrace back to the $112,000 level, following macroeconomic uncertainty triggered by unexpected jobs data. An analyst, however, had previously warned of a long squeeze targeting these levels—now potentially serving as a launchpad for an upward move. CrypNuevo is a renowned Bitcoin trader and analyst, with remarkable accuracy in his technical analyses that usually consider open interest liquidity as a main driver for price. In particular, the analyst warns of two liquidity clusters at $116,800 and $119,000, which could act as price magnets in the following days, likely causing a short squeeze. The movement could already be in motion right now, but it could also come after another retracement testing the $110,000 support, explains CrypNuevo. $BTC liquidity update: Liquidations are also starting to show up on the heatmap around $116.8k and $119k. From a swing trading perspective, I still lean toward a push into that liquidity zone – potentially from $113k (1D 50 EMA) or $110k (structural support). Lower? doubtful pic.twitter.com/SamV0hHu4A — CrypNuevo 🔨 (@CrypNuevo) August 6, 2025 A short squeeze is what happens when the BTC price surges aggressively, hitting levels with a high concentration of programmed liquidations from short-sellers. The price action triggers these liquidations, creating more bids for Bitcoin—as part of the…

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Filed under: News - @ August 6, 2025 8:24 pm