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    Home»Bitcoin»Bitcoin Set for Potential Short Squeeze as Weekly Deadline Approaches
    Bitcoin

    Bitcoin Set for Potential Short Squeeze as Weekly Deadline Approaches

    Ethan CarterBy Ethan CarterOctober 12, 2025No Comments3 Mins Read
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    Bitcoin Set for Potential Short Squeeze as Weekly Deadline Approaches
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    Main Highlights:

    • Bitcoin market analysis suggests a potential rise to $114,000 as the weekly close approaches.

    • Traders are optimistic about a BTC price recovery next week.

    • Despite the $19 billion liquidation event, the Bitcoin bull market trend is expected to remain strong.

    Bitcoin (BTC) hovered around $112,000 as Sunday’s weekly candle close approached, with traders looking forward to a potential price rebound.

    0199d85f b43c 76ef a6cb 8a71d2eac2a4
    BTC/USD one-hour chart. Source: Cointelegraph/TradingView

    Upcoming Bitcoin Liquidation “Fishing” Before Weekly Close

    Information from Cointelegraph Markets Pro and TradingView indicated a reduction in volatility following the $19 billion crypto liquidation incident.

    While BTC/USD didn’t show a significant recovery, market observers believe the upcoming week will bring improved performance.

    “I can see a potential relief bounce as we move into the weekly and futures open,” trader Skew noted in his latest update on X.

    “Both events tend to bring substantial flows from a macro perspective, especially in the current thin market conditions, so it’s wise to be cautious with margin trades, particularly in alts.”

    Another trader, HTL-NL, suggested that even though the market remains uncertain, the risk of a significant downturn is minimal.

    “It’s difficult to predict how the weekly close and next week will unfold, especially since the legacy markets had little time to react to Trump’s situation,” he shared with his followers on X.

    “Nevertheless, I’m not too concerned. A correction was expected anyway, but the events have escalated it into a system breakdown.”

    0199d85a 641f 785d a1f0 6212eeedfcaf
    BTC/USD one-day chart featuring RSI and Stochastic RSI data. Source: HTL-NL/X

    Trading analyst TheKingfisher identified a possible liquidity grab around the $114,000 mark, particularly with many traders taking short positions on BTC.

    “Weekends are typically for $BTC range liquidations fishing,” it stated alongside custom market insights.

    0199d85a e947 7987 8465 bde83df4e4b9
    BTC/USDT 15-minute chart showing exchange order-book liquidity data. Source: TheKingfisher/X

    Insight on BTC Bull Market: “Bearish Outcomes Are Possible”

    Caleb Franzen from Cubic Analytics expressed a strongly bullish outlook.

    Related: Bitcoin’s ‘macro whiplash,’ Shuffle breaches data: Hodler’s Digest, Oct. 5 – 11

    In his latest blog post, he analyzed Bitcoin’s relationship with both its simple (SMA) and exponential (EMA) 200-day moving averages.

    “There’s a possibility prices might drop further from here,” he noted.

    “Similar to the consolidations seen in August-September 2023, July – September 2024, and February – April 2025, it would be entirely normal for a brief dip below the 200-day MA before a recovery and continuation towards new highs.”

    0199d85d 996c 77a1 aca5 edff389e4ab5
    BTC/USD one-day chart featuring 200SMA and 200EMA. Source: Cointelegraph/TradingView

    Nonetheless, BTC/USD could still result in a higher low on daily charts — a scenario that Franzen mentioned would keep the uptrend intact.

    “If uptrends are simply defined by higher highs and higher lows, then nothing in this consolidation has disrupted the uptrend,” he observed.

    “While it’s important to acknowledge that bearish movements can occur during uptrends, as evidenced by this past week, it’s equally crucial to recognize that adopting a bearish stance during an uptrend often leads to losses and underperformance.”

    0199d85c 6819 71a0 bd3e 76e2114a0ff4
    BTC/USD one-day chart. Source: Substack

    This article does not offer investment advice or recommendations. All investment and trading movements carry risks, and readers should do their own research before making decisions.