Bitcoin, Signs of a Short Squeeze Detected...Will $100,000 Become a Reality?

▲ Bitcoin (BTC)

An unconventional analysis suggests that Bitcoin (Bitcoin, BTC) could quickly reach the $100,000 mark, as it shows signs of a record-breaking short squeeze.

Crypto analyst Lark Davis stated in a video uploaded to his YouTube channel on April 27 (local time) that the funding rate in the Bitcoin futures market has been negative for 46 consecutive days. Davis pointed out the current situation where bearish bets are excessively concentrated, stating, "The 30-day average funding rate maintaining negative values for such an extended period is similar to the market bottom during the 2022 downturn." Davis warned that if the price starts to rebound, leveraged short positions would be successively liquidated, leading to a cascading effect that could drive the price vertically up to $100,000.

Based on past cycles, Davis projected a high probability that the bull market would continue until 2028. Historically, it has taken approximately 26 months from breaking the previous all-time high to reaching the peak of the next bull market. A golden cross of the Moving Average Convergence Divergence (MACD) indicator was also observed in the price ratio of copper to gold. Davis emphasized that this signal precisely coincided with the start of mega bull markets, such as in late 2016 and mid-2020. The formation of golden crosses by long-term moving averages on the weekly chart further supports a long-term upward trend.

Macroeconomic and astronomical cycles are also sending positive signals. Davis analyzed that "the Trump administration's stock market stimulus could continue until mid-2028." It is observed that market expansion will be maintained until July 2028, when the next Blood Moon cycle cluster begins. Business cycles and presidential election cycles are also key factors supporting this long-term upward outlook. The market is currently in a massive price formation process heading towards mid-2028.

In the altcoin market, Solana (Solana, SOL) and Ethereum (Ethereum, ETH) are also attempting to break through major resistance levels. Solana is aiming for a three-digit price recovery within a triangular convergence pattern, while Ethereum has formed a structure that could rise to $2,800 if it breaks above $2,400 on a daily closing basis. As trading conditions for Bitcoin, Ethereum, XRP, and others improve, investor capital inflow is accelerating. Over the past five trading days, US spot Bitcoin ETF purchases recorded nine times the amount mined, indicating an extreme supply-demand imbalance.

Strategy aims to achieve a market capitalization of $1 trillion to $2.5 trillion within the next five years through its Bitcoin power curve strategy. The possibility of accumulating over 800,000 additional coins during this process has also been raised. The explosive growth of AI-related stocks such as Nvidia and Micron Technology is driving liquidity across the entire asset market. Bitcoin is leveraging record bearish bets as energy to move towards the historical milestone of $100,000.

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