Bitcoin Hits New All-Time High Above $110K Amid Surge in Short Positions
On Thursday, Bitcoin (BTC) surged past $110,000 for the first time ever, triggering roughly $500 million in liquidations across derivatives markets. Despite this fresh record, many traders remain skeptical, choosing to short the asset rather than ride the rally.
Trading volume jumped 74% over the past 24 hours as market participants scrambled to position themselves, with a significant majority taking short positions—betting that Bitcoin’s price will decline.
According to Coinalyze, the long-to-short ratio has dropped to its lowest level since September 2022, right in the heart of the last crypto winter.
This bearish sentiment started back on April 21 when traders aggressively shorted Bitcoin’s breakout above $85,000, expecting that level to mark the cycle high and anticipating a double top formation. Yet, despite limited retail buying, Bitcoin steadily pushed higher, breaking through key resistance levels at $97,000 and $105,000.
Several factors are behind this move: a rebound in U.S. equities as trade tensions eased, increased institutional activity on platforms like the CME, and a large pool of short positions that have become targets for a short squeeze—helping to propel prices even higher.
Though a rising number of shorts might seem bearish on the surface, they actually fuel upward momentum by providing targets for stop-loss triggers and causing forced buybacks, as seen earlier this week.
Shorting near record highs is a common strategy. Traders often place shorts at known resistance points—technical or psychological—while setting stop-loss orders just above those levels to limit risk. For example, a trader who shorted around $105,000 during Bitcoin’s three tests of that zone could have locked in profits on three separate dips near $102,000, and even if stopped out at $109,000, still ended the week in the green.
Meanwhile, open interest in Bitcoin derivatives has surged disproportionately compared to the price. Over the last day, BTC’s price rose 4.8%, but open interest climbed 17%, despite the liquidation of hundreds of millions in positions.
This suggests the recent breakout is heavily driven by leverage and may lack the sustainability of previous rallies above $100,000 in December and January.
Whether the appetite for short positions will persist as Bitcoin pushes above $111,000 remains to be seen, but the abundance of shorts currently in place could fuel further squeezes should the price continue its upward momentum.
