The recent Bitcoin rally to $75,000 is attributed to a chain of short liquidations on Binance futures, according to a statement by CryptoQuant contributor BorisD.
The analyst also warned of a potential sharp pullback without organic spot demand. He suggested that the forced closure of short positions created buying pressure, pushing the price up almost without pause.
In November 2024, the Short Squeeze Value indicator on Binance reached 5.38. This week, the same indicator hit 6.94, the highest in two years.
BorisD emphasized that the rise was “mechanical” and almost entirely linked to the Binance futures market.
“Such aggressive short squeezes are typical of bear market dynamics. When the futures fuel runs out and organic spot demand doesn’t fill the gap, the risk of a sharper decline in the future remains,” the expert noted.
Bull Zone?
An analyst using the pseudonym Darkfost pointed out that the Bitcoin Bull Score metric has returned to bullish territory for the first time since October 2025, reaching above 60. Even in May, when Bitcoin rose to $82,000, the indicator did not exceed this mark.
Currently, six out of 10 metrics, including demand growth, stablecoin liquidity, and realized investor price, have turned “green.”
“During bullish phases, the Bull Score Index remains above 60 most of the time before dropping into bearish territory. If this indicator can hold at this level and continue to rise, a new bullish cycle may well begin,” Darkfost suggested.
Earlier, CryptoQuant noted that on-chain metrics showed the first signs of a recovery in Bitcoin’s spot demand, indicating a possible end to the bear phase.
