The recent surge in Bitcoin prices, reaching $75,000, has been attributed to a chain liquidation of short positions on Binance's futures market. This insight was shared by a contributor to CryptoQuant, known by the pseudonym BorisD.
Source: CryptoQuant.BorisD also cautioned about the potential for a sharp pullback if there isn't organic spot demand. According to him, the forced closure of short positions has created buying pressure, driving the price upward almost uninterrupted.
In November 2024, the Short Squeeze Value indicator on Binance hit 5.38, while this week it reached 6.94, marking a two-year high.
BorisD emphasized that this price increase was largely "mechanical" and primarily driven by the futures market on Binance.
“Such aggressive short squeezes are typical in a bear market. When the futures supply runs out and organic spot demand doesn’t fill the gap, the risk of a more significant decline in the future remains,” the expert noted.
Are We in Bull Territory?
Another analyst, operating under the pseudonym Darkfost, pointed out that the Bitcoin Bull Score metric has returned to bullish territory for the first time since October 2025, now exceeding 60. Even in May, when Bitcoin reached $82,000, this indicator did not surpass that level.
Source: CryptoQuant.Currently, six out of ten metrics are showing positive trends, including increased demand, stablecoin liquidity, and the realized price for investors.
“During bullish phases, the Bull Score Index typically stays above 60 before dipping into bear territory. If this indicator can maintain its position and continue to rise, a new bullish cycle could begin,” Darkfost suggested.
It's worth noting that CryptoQuant has observed early signs of a recovery in on-chain metrics related to Bitcoin's spot demand, indicating a possible end to the bear phase.