Bitcoin shorts face potential squeeze as BTC price sets sights on $50K

Bitcoin (BTC) decided to take a break from its upward momentum on February 9th when its 24-hour gains reached 6%.
BTC’s price trajectory retraced after reaching $47,700, according to data from Cointelegraph Markets Pro and TradingView.
The move, mainly driven by spot markets, continued without pause overnight during trading sessions in Asia and the United States, with little resistance from bulls.
At the time of writing, Bitcoin was still experiencing volatility, with $47,400 being a key focus. This marked the highest level for Bitcoin since late 2021, and its performance for the week was the strongest since last October.
Popular trader Jelle commented in his latest analysis on X (formerly Twitter): “Strong bounce from the midrange, attacking $48,000 again, as expected.” He also described the current price range as a “moment of truth.”
Fellow trader Skew warned that the day would likely remain “pretty volatile.”
Keith Alan, CEO and co-founder of trading resource Material Indicators, took a more cautious approach to the immediate outlook. He observed significant sell-side liquidity below the two-year range highs and $50,000.
Alan’s own X post stated: “Something to consider before you FOMO into BTC at this level. There is ~$175M in BTC ask liquidity (aka resistance) stacked between here and $50k, and only ~$50M in bid support down to $43k.”
However, Alan also suggested that a weekly close above $45,000 would benefit the bulls, and if the market reached $50,000, whales could easily push it higher, causing short positions to suffer.
An accompanying chart provided buy and sell liquidity and cumulative volume delta (CVD) data on the BTC/USDT order book of Binance, the largest global exchange.
In other news, the newly launched U.S. spot Bitcoin exchange-traded funds (ETFs) continued to generate positive flows, which is good news for bulls.
According to Bloomberg Intelligence ETF analyst James Seyffart, the Grayscale Bitcoin Trust (GBTC) saw outflows as expected, while the remaining nine ETFs had the third-largest cumulative netflows since their launch on January 11th.
The ETFs from BlackRock and Fidelity Investments had the most successful first month’s trading of any ETF product in the past thirty years.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.