After Bitcoin falls below $90,000, three major signals indicate that a short squeeze risk is brewing

RektRecovery · 2026-01-09T05:20:11+00:00

Bitcoin experienced intense volatility this month, with the price dropping below $90,000. Bearish sentiment in the market intensified, funding rates declined, open interest continued to increase, and leverage ratios approached high levels, gradually accumulating risk. Market participants are watching for a potential rebound triggered by forced buybacks.

RektRecovery

2026-01-09 05:20:11

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【Crypto World】Bitcoin has experienced significant volatility this month. After a rally, it fell below $90,000, and the market is now pondering what will happen next.

A few phenomena are worth noting: the funding rate on a major exchange dropped to -0.002, indicating that bearish sentiment is indeed fermenting. At the same time, during the price decline, open interest in contracts actually increased, showing that there are quite a few short positions. Additionally, leverage has risen to nearly a one-month high, indicating that risks are accumulating.

This situation is quite delicate—if a large-scale forced liquidation occurs, these accumulated short positions could erupt all at once, potentially leading to a very strong rebound. Market participants are now waiting for this critical point.

BTC1,4%

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BearMarketLightning

· 17h ago

With so many shorts accumulated, they're just waiting for a爆破, and if it rebounds, it might be a bloodbath.

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StakeOrRegret

· 01-10 15:39

With so many shorts accumulated, it feels like it could blow up with a single push... Let's wait and see who breaks first.

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MEVVictimAlliance

· 01-09 05:50

There are so many short positions piled up, it feels like it's about to explode... It's a bit risky to enter with a popcorn-watching mentality.

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MoonWaterDroplets

· 01-09 05:47

With such heavy short accumulation, it feels like a liquidation wave could come at any time. Will the rebound then directly trigger a massive surge?

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PseudoIntellectual

· 01-09 05:46

The short positions are piling up so aggressively, it feels like it's about to explode at any moment. We'll see who breaks first.

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MEVHunter

· 01-09 05:41

ngl the negative funding rate smells like a trap setup... shorts are piling bags while leverage hits monthly highs? that's textbook liquidation cascade waiting to happen. one fat liquidation rips through that order book and suddenly everyone's getting squeezed out of their positions fr fr. been monitoring the mempool on this—those forced buybacks gonna hit different when they come.

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