Bitcoin (BTC) bulls are fighting to hold on to support at $35,300 after the top crypto hit a 2023 high just below $36,000 on Tuesday, in a move that many analysts have called a “short squeeze.”
The move higher came as open interest (OI) in Bitcoin futures surpassed $15 billion, prompting technical analysts to warn that volatility was about to spike, with many worrying that BTC’s price would sink lower in the aftermath.
“Yup, there was a significant rise in OI overnight – it seems to be more of the same – shorts aping into passive bids here at the local lows,” said market analyst CrediBULL Crypto. “We have a big rise in OI, perp takers net selling, funding decreasing, and limit bids being filled. A recipe for a nice squeeze up.”

Exchange BTC Futures Open Interest. Source: CoinGlass

“Open interest still building up & looking more like shorts have a higher float in the OI build up here. $34,800 ~ key price for a squeeze,” he said.
Data provided by CoinGlass shows that in the past 24 hours, 38,731 traders had their positions liquidated for a total of $87.4 million.
Bitcoin bears are now attempting to reestablish dominance after pushing BTC to a daily low of $35,105, while bulls strategize on how they can finally break free of resistance near $35,300 and push for the next leg up in price.
“Next week’s U.S. CPI data could trigger another rally in Bitcoin if inflation declines again,” said Markus Thielen, head of research at Matrixport. “Ahead of this data release, we can see Bitcoin attempting to break out from its recent $34,000 – $35,000 trading range. A break above $36,000 could propel Bitcoin toward our next technical resistance level at $40,000, potentially reaching $45,000 by the end of 2023.”
Thielen pointed to “three ‘macro bullish’ data points” as the impetus for the recent moves higher. “The U.S. Treasury Department slowing the pace of issuing longer-dated debt, which indicates that bond yields should decline; Chair Powell’s dovish stance during the post-FOMC meeting press conference, indicating that the Fed is unlikely to hike interest rates again during the cycle; and Disappointing U.S. employment data, reinforcing the first two points,” he said.
“The next crucial macro data point will be the U.S. CPI (inflation) data, scheduled for release next Tuesday, November 14th,” Thielen said. “With a steady increase in buyers during U.S. trading hours and an ongoing attempt for Bitcoin to break out, we could see prices rallying into the end of the month (and year). The Santa Claus rally could start at any moment.”




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