Bitcoin Short Squeeze Pressure Cools After Fueling Major Price Moves

In a recent post shared by CryptoQuant contributor Joao Wedson, the Binance Short Squeeze Pressure metric is once again drawing attention.

The cryptocurrency market is known for its volatility, which can be amplified during periods of intense selling pressure or short squeezes. In a recent post, CryptoQuant contributor Joao Wedson highlighted the Binance Short Squeeze Pressure metric, which has been a subject of interest for its role in signaling market turning points.

The metric, visualized in orange on the chart, measures the relative pressure on short sellers, often leading to liquidations that spur Bitcoin’s price (white line) to new highs.

As the chart shows, spikes in the Short Squeeze Pressure metric are typically followed or coincided with strong upward moves in BTC’s price. For instance, around May 7–8, a prominent squeeze signal was followed by a rapid price breakout, confirming the metric’s predictive power.

However, the current scenario presents a more neutral perspective. Currently, there are no urgent signals from the Short Squeeze Pressure metric, and the price movements are relatively contained.

This more balanced outlook suggests a possible cooling-off period, where price action may be less volatile, at least for the moment.

Wedson explains that the metric is significant as it tracks when traders who sold short may be forced to close their positions, commonly leading to swift changes in the market. It's a valuable tool for identifying potential reversals in market trends.

While the short squeeze pressure has decreased for the time being, past experience indicates that it could return quickly, bringing substantial volatility with it. As always, traders should be aware of the market shifts and adjust their strategies accordingly.

The cryptocurrency market is constantly evolving, and new trends and technologies are emerging. To stay ahead of the curve, traders need to be informed and engaged. With the rapid advancements in artificial intelligence (AI), there are endless possibilities for traders to leverage AI to improve their decision-making and optimize their trading strategies.

In the rapidly changing cryptocurrency market, staying one step ahead can mean the difference between success and failure. With the help of AI, traders can unlock incredible opportunities to navigate the market effectively and achieve their desired outcomes.

One interesting use case is the creation of a 30-day crypto portfolio aiming for a 15% profit, as conceived by ChatGPT. In this scenario, the AI generates a balanced portfolio that includes Bitcoin, Ethereum, and a stablecoin, aiming for a modest 15% return over the month.

The portfolio starts with an initial investment of $10,000, divided proportionally among Bitcoin, Ethereum, and Tether. The goal is to achieve a profit of $1,500 by the end of the 30-day period.

As the portfolio evolves, the AI adjusts the positions and provides insights based on market trends and news events. The aim is to maximize gains while minimizing losses, taking into account the inherent volatility of the crypto market.

This use case demonstrates the potential of AI to generate creative and useful solutions for traders. From generating technical analysis indicators to predicting market movements, AI can be a valuable asset in any trader's arsenal.

In another instance, AI is used to predict the next strongest growth cycle for Bitcoin. According to the predictions, history suggests that Bitcoin could be on the verge of its strongest growth cycle yet.

As the saying goes, “the third time's the charm.” In the case of Bitcoin, this saying could be applied to its strongest growth cycles, which seem to occur in multiples of three.

After a period of dormancy or minimal growth, Bitcoin typically experiences a surge in activity, leading to significant price appreciation and a new all-time high.

After this initial surge, Bitcoin experiences a second strong growth cycle, which is even more powerful than the first. Finally, the third growth cycle, which is the shortest and final stage of the cycle, brings Bitcoin to its peak value before the cycle begins anew.

This pattern has repeated in the past, and if history repeats itself, Bitcoin could be on the verge of its strongest growth cycle yet.

This prediction is based on the observation that Bitcoin's previous strongest growth cycles occurred in multiples of three. The shortest and final stage of the cycle is always the third growth cycle.

Currently, Bitcoin is showing signs of a new bull market, with prices rising steadily and traders becoming more bullish.

If this prediction is correct, we can expect to see Bitcoin prices surge to new all-time highs in the coming months.

This prediction is interesting, but it's important to note that it's speculation. Only time will tell if Bitcoin will indeed experience its strongest growth cycle in the near future.

In a related development, Pantera Capital CEO predicts that the U.S. will sell gold and buy Bitcoin.

According to the CEO, the government is slowly but surely moving in that direction.

"I think the U.S. government will sell gold and buy Bitcoin. Where we're headed, they'll sell gold and get involved in crypto in a big way. I think it's going to happen slowly