Bitcoin Reclaims $67,500 Level… Will a Short Squeeze Drive the Rally?

▲ Bitcoin (BTC) / ChatGPT-generated image

The major cryptocurrency market, led by Bitcoin (BTC), is attempting a full-fledged rebound toward the max pain price amid large-scale short position liquidations. As investors who had bet on declines are forced to close their positions, buying pressure is flowing in, creating a so-called short squeeze that is driving price recovery across the market.

According to crypto-focused outlet CoinGape, approximately $150 million worth of short positions were liquidated across the market over the past 24 hours. These liquidations are immediately converting into buying pressure, serving as a catalyst pushing major coins toward their max pain levels in the options market. Max pain refers to the price point at which the greatest number of option buyers incur losses at expiration, and market prices tend to gravitate toward that level.

Bitcoin is currently trading around $67,200, closely pursuing this month’s max pain price of $67,500. With open interest steadily increasing and funding rates turning positive, market expectations for further gains are reflected. Experts suggest that if Bitcoin breaks above and stabilizes beyond the max pain level, it could trigger a strong short-term rally.

Ethereum (ETH) and Solana (SOL) are also showing recovery toward their respective max pain prices. Ethereum is maintaining levels around $1,940 and aiming to reclaim its $2,000 max pain mark. Solana, after confirming support near $82, is widening its upward move toward its max pain level of $90. Data from on-chain analytics firm Santiment indicates that social interest and positive sentiment toward these assets have noticeably improved in recent days.

XRP is no exception. The token is currently trading around $1.41 as it attempts to recover its $1.45 max pain price. XRP has become one of the assets experiencing concentrated retail buying, with bullish sentiment on social media reaching its highest level in five weeks. Key technical indicators, including the Relative Strength Index, have also moved out of oversold territory and climbed above the midline, signaling a positive outlook.

The cryptocurrency market has now entered a zone of heightened volatility ahead of major options expirations. As a large volume of bearish bets is being cleared out, many analysts believe the market’s underlying strength is recovering. Investors are closely watching whether each asset can reach its max pain price, along with the scale of any additional short liquidations, to gauge the market’s next direction.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses resulting from it. The content should be interpreted for informational purposes only.*