Current Bull Market Experiences Fewer Significant Long Squeezes

Axel Adler Jr. brought up a key shift in how traders are behaving during the current bull run. He concluded in his findings that fewer

Axel Adler Jr., a recognized trader and analyst, has pointed out a crucial difference in how traders are engaging in the current bull market compared to the previous one. As Adler Jr. highlighted in a recent X post, a smaller percentage of traders are entering into short positions, anticipating a decline in prices, in the present cycle. This finding, based on data from CryptoQuant, stands in contrast to the previous bull market, where a larger portion of traders were closing out their long positions.

This shift in investor behavior speaks to a collective caution in predicting bearish movements and may be seen as a bullish indicator.

One interesting observation from Adler Jr.'s analysis is that long squeezes, a scenario where traders who have held onto their positions for some time decide to sell, have been infrequent during this cycle.

This observation is significant because it suggests that traders, on balance, expect the market to move higher.

The chart, titled "Bitcoin Advanced Short/Long Squeeze Signal" and credited to CryptoQuant, follows Bitcoin's price action and highlights bullish and bearish liquidations, along with an indicator designed to detect squeeze signals.

The time frame covers 2020 to mid-2025, providing a broader context as the market transitions from bear to bull markets and vice versa.

The chart shows a denser frequency of both longs and shorts liquidating in 2021, reflecting the heightened risk appetite and active trading of that period. In comparison, there are fewer trades and a slower pace of liquidation between 2023 and 2025, with open interest gradually increasing as prices stabilize around the $80,000 level for BTC.

This observation takes on added importance given the maturing stage of the cryptocurrency market. The reduced activity in bearish shorting limits the potential for rapid price reversals, which may facilitate a smoother trajectory of growth for Bitcoin.