Tomorrow, the Bitcoin price faces a significant liquidity test as the U.S. Treasury Department plans to repurchase up to $6 billion in longer-term debt. While this alone does not guarantee an upward movement, another signal is emerging from the derivatives side.
The Binance Squeeze Risk Oscillator (SMA-14) has risen above +0.80 after finding support near its zero-equilibrium level. In simple terms, the short-exhaustion signal has reappeared after briefly returning to neutral.
Bitcoin Price Faces A Potential Short Squeeze
According to analyst ‘MorenoDV_’ data, this setup is crucial as renewed short exhaustion can create vulnerability to the upside. A higher Bitcoin price could lead to short sellers closing their positions, adding buying pressure and potentially accelerating the rally.
However, caution is advised. While the indicator suggests a possibility, it does not confirm that forced covering is already in progress.
The rebound of the oscillator also does not indicate that leverage has been cleared or that new shorts have entered the market. The upcoming price movement will be crucial.
Currently, Bitcoin is consolidating in the $84K–$87K range. A breakout above this zone, along with short liquidations and declining open interest, could set the stage for a squeeze. The aftermath will be the true test.
Past instances shown in the indicator’s chart suggest that positive extremes do not always result in sustained gains. Therefore, despite the renewed short-exhaustion signal, the setup could still fail if the price remains stagnant or drops.
Treasury Buyback Meets A Renewed Short Signal
Currently, the Treasury buyback and the Binance oscillator present two distinct pieces of the same puzzle: can upward pressure build effectively?
Confirmation from a breakout and the underlying demand is still needed for the Bitcoin price. Until then, the squeeze remains a scenario to monitor rather than a confirmed trade.
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