The recent rally of Bitcoin to $75,000 is linked to the chain liquidation of shorts on Binance futures. This was stated by a contributor to CryptoQuant under the pseudonym BorisD. At the same time, the analyst warned of the risk of a sharp pullback without organic spot demand. According to him, the forced closure of short positions created pressure on buying and pushed the price up almost without pause.

In November 2024, the Short Squeeze Value indicator on Binance reached 5.38. This week, the same indicator stood at 6.94 – the highest level in 2 years. BorisD emphasized that the growth was “mechanical” and almost entirely linked to Binance’s futures market. Such aggressive short squeezes are typical of bear market dynamics, and when futures fuel reserves run out and organic spot demand fails to fill the gap, the risk of a more severe downturn in the future will persist, the expert noted.

An analyst using the pseudonym Darkfost pointed out that the Bitcoin Bull Score metric has returned to the bullish zone for the first time since October 2025 – to a level above 60. Even in May, when Bitcoin was rising to $82,000, the indicator did not exceed this mark. Now, 6 out of 10 metrics are in the green, including demand growth, stablecoin liquidity, and the realized price of investors. During bullish phases, the Bull Score Index remains above 60 for most of the time before dropping into the bearish zone. If this indicator can hold at this level and continue to rise, a new bullish cycle may well begin, Darkfost suggested.

As a reminder, CryptoQuant noted that on‑chain metrics have shown the first signs of a recovery in spot demand for Bitcoin, signaling a possible end to the bearish phase. The combination of a technical short squeeze and improved fundamental indicators creates a mixed picture for the market, where short‑term growth may continue, but long‑term stability depends on the return of real purchasing demand.

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The material was prepared solely for informational and educational purposes and does not constitute financial advice or a recommendation.