Analysts: Bitcoin approaches new highs but traders still show bearish sentiment, an increase in short positions may trigger a potential "short squeeze".

On July 3, Coindesk analyst Oliver Knight stated that despite the trading price of Bitcoin surpassing $110,000 and approaching its all-time high, traders are still displaying bearish sentiment, with the Long-Short Ratio significantly declining from 1.223 (long positions in the lead) to 0.858 (short positions in the lead). Data shows that the open interest in short positions has risen from $32 billion to $35 billion, indicating an increase in capital flowing into bearish positions, reflecting a lack of confidence in Bitcoin's continued pump. Currently, Bitcoin remains in a range of $100,000 to $110,000. Technical indicators such as RSI show bearish divergence, and traders are using short-term strategies for arbitrage within this range. The increase in short positions also suggests a potential bullish scenario: a short squeeze. If Bitcoin breaks through its historical high, triggering the liquidation points and stop loss levels for short positions, it could quickly increase buying pressure, thereby pushing the price further up.