Bitcoin Dominance Steady in Q4 Downturn, Signaling Possible Holiday Short Squeeze
The post Bitcoin Dominance Steady in Q4 Downturn, Signaling Possible Holiday Short Squeeze appeared on BitcoinEthereumNews.com.
Bitcoin faces a potential short squeeze in late 2025 amid Q4 weakness, with $5.8 billion in leveraged shorts clustered around $95k and strong dominance at 60%. Technical indicators like undervalued MVRV and RSI near 35 signal a possible holiday rally, targeting resistance at $95k if bulls activate. Bitcoin dominance steady at 60% despite 63% pullback from Q2-Q3 gains, showing investor confidence. Altcoin dominance hits five-year low of 6.73%, indicating limited risk appetite beyond Bitcoin. Over $5.8 billion in shorts above $90k creates liquidity target, with MVRV undervaluation adding rally potential per TradingView data. Discover Bitcoin’s short squeeze setup in Q4 2025: dominance holds firm amid pullback, shorts pile up for potential holiday bounce. Stay informed on BTC recovery signals and trade wisely today. What is setting up a Bitcoin short squeeze in late 2025? Bitcoin short squeeze in late 2025 is emerging from Q4 market dynamics, where a 63% pullback from earlier highs has left many investors cautious, yet Bitcoin’s dominance remains robust at around 60%. This stability reflects parked capital rather than outflows, while technical undervaluation via MVRV metrics suggests a reversal opportunity as holiday liquidity thins out. Source: TradingView (BTC.D/USDT) The cryptocurrency market in Q4 2025 has proven challenging, marking the weakest quarter of the year with significant drawdowns. Bitcoin, trading approximately 25% below its peak of $126k, has endured persistent fear, uncertainty, and doubt (FUD) from macroeconomic pressures. However, this has not eroded its market position. Data from on-chain analytics platforms indicate that Bitcoin’s dominance metric has stabilized near 60%, a level that underscores sustained investor trust. In typical market cycles, declining Bitcoin dominance would signal capital rotation into altcoins, but the current environment shows the opposite trend. Altcoins, excluding the top 10 by market cap, have seen their collective dominance shrink to 6.73%, the lowest in…
Filed under: News - @ December 23, 2025 1:25 am