Bitcoin Short Squeeze at $118K: Bullish Momentum Likely
I noticed a $1.54M short liquidation in Bitcoin at $118,365.30, which looks like a meaningful short squeeze and a bullish near-term signal.
This event likely reduced short-side pressure and can translate into further upside if buyers follow through; however, it's one data point, not a trend confirmation.
I will watch volume and price structure around this level and prefer buying on confirmed pullbacks or a clean breakout rather than chasing the immediate spike.
Analysis
The liquidated $1.54M in shorts around $118.4k reduces bearish leverage and raises the probability of continued upside in the short term, but confirmation requires rising volume and higher lows.
Recommendation
Consider initiating or adding positions on validated pullbacks or on a confirmed breakout; avoid chasing intraday spikes and use tight stop-losses to control risk.
Disclaimer
The Analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.