{"id":7737,"date":"2025-10-21T05:00:19","date_gmt":"2025-10-21T05:00:19","guid":{"rendered":"https:\/\/ad-doge.com\/blog\/bitcoin-enters-disbelief-phase-could-short-sellers-face-the-next-squeeze\/"},"modified":"2025-10-21T05:00:19","modified_gmt":"2025-10-21T05:00:19","slug":"bitcoin-enters-disbelief-phase-could-short-sellers-face-the-next-squeeze","status":"publish","type":"post","link":"https:\/\/ad-doge.com\/blog\/bitcoin-enters-disbelief-phase-could-short-sellers-face-the-next-squeeze\/","title":{"rendered":"Bitcoin Enters \u2018Disbelief Phase\u2019 \u2013 Could Short Sellers Face The Next Squeeze?"},"content":{"rendered":"

After the massive crash on October 10 – which saw Bitcoin (BTC) touch $102,000 before recovering some losses – some analysts now predict that the top cryptocurrency may be on the verge of another bullish rally as it enters the \u2018disbelief phase.\u2019<\/p>\n

Bitcoin In Disbelief Phase – Trouble For Bears?<\/h2>\n

According to a CryptoQuant Quicktake post by contributor Darkfost, Bitcoin appears to be entering the disbelief phase, which increases the possibility of a rebound to the upside. The contributor emphasized the slightly negative funding rate to support their analysis.<\/p>\n

For the uninitiated, the Bitcoin disbelief phase occurs when a new uptrend begins, but most investors remain skeptical after a recent correction, doubting that the recovery is real. During this phase, lingering bearish sentiment and short positions often act as fuel for a stronger rally once confidence returns.<\/p>\n

Darkfost stated that investors\u2019 skepticism toward BTC returning to bullish mode can be gauged through BTC funding rates in the derivatives market. Funding rates remained negative at -0.004% on the exchange for six out of seven days over the past week, indicating traders are still slightly bearish.<\/p>\n

\"btc\"<\/p>\n

The likely reason behind traders\u2019 short bias is the October 10 crypto market crash that led to a liquidation worth $19 billion. Since then, traders have consistently chosen to short the market instead of getting trapped in another price pullback.<\/p>\n

However, the longer BTC remains in the disbelief phase, the stronger the potential for an explosive upside move becomes. Darkfost added:<\/p>\n

\n

If the current uptrend continues to establish itself, the growing pile of short positions against it could become a powerful fuel for the next leg higher. As these shorts get liquidated, it would drive prices upward, triggering a short squeeze.<\/p>\n<\/blockquote>\n

If a short squeeze happens, then BTC could quickly rally to major liquidity zones around $113,000 level, and even as high as $126,000 region, where significant short orders liquidations are clustered.<\/p>\n

The analyst shared two previous instance where such a pattern played out. In September 2024, BTC fell to $54,000 before surging to a new all-time high beyond $100,000.<\/p>\n

Similarly, in April 2025, the flagship digital asset rallied from $85,000 to $111,000, before climbing even higher to $123,000. To conclude, the Bitcoin market may be on the verge of another short squeeze, fueled by investors\u2019 skepticism.<\/p>\n

BTC Investors Need To Be Cautious<\/h2>\n

Although BTC is giving hints of a looming short squeeze, investors should still exercise some caution before entering the market in hopes of an instant turnaround in sentiment. For example, Bitcoin activity recently slumped below its 365-day average, raising fears of a loss of momentum.<\/p>\n

That said, some crypto analysts forecast that BTC is likely done with the price correction and is set to surge in the coming days. At press time, BTC trades at $110,814, up 2.8% in the past 24 hours.<\/p>\n

\"bitcoin\"<\/p>\n","protected":false},"excerpt":{"rendered":"

After the massive crash on October 10 – which saw Bitcoin (BTC) touch $102,000 before recovering some losses – some analysts now predict that the top cryptocurrency may be on the verge of another bullish rally as it enters the \u2018disbelief phase.\u2019 Bitcoin In Disbelief Phase – Trouble For Bears? According to a CryptoQuant Quicktake…<\/p>\n","protected":false},"author":1,"featured_media":7738,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[245],"tags":[21,22,3678,28,32,36,51,818,254,255,2065],"class_list":["post-7737","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-binance","tag-bitcoin","tag-bitcoin-disbelief-phase","tag-bitcoin-news","tag-btc","tag-btcusdt","tag-crypto","tag-crypto-exchange","tag-cryptocurrency","tag-digital-asset","tag-on-chain-analysis"],"_links":{"self":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/posts\/7737","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/comments?post=7737"}],"version-history":[{"count":0,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/posts\/7737\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/media\/7738"}],"wp:attachment":[{"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/media?parent=7737"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/categories?post=7737"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ad-doge.com\/blog\/wp-json\/wp\/v2\/tags?post=7737"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}