Bitcoin has returned to 110,000 USD! Analysts warn: market bearish sentiment intensifies, but short squeeze scenario cannot be ruled out.

Bitcoin once again crossed the $110,000 mark yesterday (3rd), and market sentiment is gradually warming up. Some analysts even point out that Bitcoin may soon challenge its historical high again. However, the latest interpretation by CoinDesk crypto analyst Oliver Knight indicates that market data shows traders still hold a relatively high bearish sentiment. (Background: Quick News》Bitcoin Breaks Through $110,000 Again) (Background Supplement: Arthur Hayes' "The Price Relationship of Stablecoins" Full Text: Stop Buying Circle Stocks, Go Long on Bitcoin) Entering July, Bitcoin once again crossed the $110,000 mark yesterday (3rd), and market sentiment is gradually warming up, with some analysts indicating that Bitcoin may soon challenge its historical high again. However, the latest interpretation by CoinDesk crypto analyst Oliver Knight shows that market data indicates traders still hold a relatively high bearish sentiment. Price Surge, Sentiment Turns Bearish Knight pointed out that the Bitcoin Long-Short Ratio plummeted from 1.223 to 0.858 in just a few days, indicating an increasing bearish force. At the same time, the unclosed contracts for short positions also surged from $32 billion to $35 billion. Knight believes this reflects traders' lack of confidence in Bitcoin maintaining its upward momentum, as they continually hedge their risks by increasing short orders. Additionally, according to an FXStreet report on July 2nd, the RSI is currently showing a bearish divergence; whenever Bitcoin's price challenges the $110,000 level, the momentum indicator tends to weaken. Knight also pointed out that Bitcoin has been range-bound between $100,000 and $110,000 recently, leading short-term traders to continuously short at resistance levels and cover at support levels, forming a high-frequency "scalp" strategy. Accumulation of Short Positions, Seeds of Short Squeeze However, while shorting funds have brought downward pressure, they have also sown the seeds for a "short squeeze" opportunity. Knight pointed out that if the price unexpectedly breaks through historical highs, it could trigger stop losses and forced buybacks from the shorts, forcing them to buy back Bitcoin, which could rapidly push up the price. Knight describes this scenario with one phrase: "The impulse of buying will drive continuous growth." Related Reports Why Buy Bitcoin at $100,000 When Choosing to Buy MSTR Stock at a 75% Premium? Is Wall Street Going Crazy? The Biggest Risks of Bitcoin Have Yet to Erupt, But This May Be Your Biggest Opportunity. Bridgewater Capital Founder Warns: Companies Hoarding Bitcoin Must Cool Down; Investors Can Directly Buy Coins, No Need to Pay Premium for ETFs. <Bitcoin Stands Back at $110,000! Analysts Warn: Market Bearish Sentiment Intensifies, but Short Squeeze Scenario Cannot Be Ruled Out> This article was first published in BlockTempo, the most influential Blockchain news media.