Bitcoin Weakens Further, but Oversold Signals Hint at Possible Squeeze
Bitcoin is struggling to regain momentum after a week marked by intensified selling pressure, mounting exchange inflows, and deteriorating technical indicators.
Key Takeaways:
- Shorts dominate Bitcoin’s leveraged market.
- Technical indicators remain bearish despite oversold RSI.
- Nearly $1B BTC hit exchanges in three days.
- $94K support will decide rebound or further decline.
The benchmark cryptocurrency is trading only slightly above the $94,000 mark, and analysts are split between expectations of a relief rally and fears of a deeper correction.
Fresh data from multiple market observers suggests that sentiment among leveraged traders has shifted dramatically. Over the past year, long positions have continued to unwind while short exposure has grown, crowding one side of the market.
According to liquidation heatmap metrics, bullish leverage has already been absorbed, leaving the majority of leveraged traders positioned for further downside. Some analysts argue that this imbalance could eventually act as fuel for a sharp reversal — but only if Bitcoin enters and sustains an accumulation phase.
Bitcoin’s 1-year liquidation heatmap shows long positions continuing to decline while short positions keep increasing.
Short positioning is now heavily crowded, and most long positions have already been wiped out. In other words, the majority of leveraged exposure is now on the… pic.twitter.com/z6OgckGvQd
— Boris. (@Fundingvest) November 16, 2025
A Crowded Short Market Raises the Stakes
Boris from Fundingvest shared a 1-year liquidation heatmap showing long liquidations tapering off while short liquidations continue to stack. According to him, the “majority of leveraged exposure is now on the short side,” suggesting the market may be vulnerable to a large short squeeze. He added that Bitcoin may need to stabilize within the $89,000–$93,000 area before an upside breakout becomes possible.
A similar view is echoed by trader Michaël van de Poppe, who expects a “fast move” upward if the current structure holds. He emphasized that Bitcoin swept liquidity over the weekend, creating the perfect setup for a higher low. Should Bitcoin maintain support near $94,000, he believes a test of $100,000 remains realistic within the week.
Ideally, I want to see a fast move back up on $BTC is what I'd prefer to see.
We swept the low over the weekend, which means that I'd want to see a higher low being created here.
If that happens, then there's trillions and trillions of short liquidity ready to be taken out.… pic.twitter.com/3TJsdtouZZ
— Michaël van de Poppe (@CryptoMichNL) November 17, 2025
However, that outcome depends on whether the market avoids further selling pressure — a variable that appears unstable at the moment.
Technical Weakness Strengthens Bearish Narrative
While some traders anticipate a rebound, momentum indicators show weakening structure. Crypto Rover highlighted that Bitcoin has now lost the 50-week moving average and flipped the weekly Supertrend to bearish, both of which historically precede extended corrective periods.
Bitcoin isn’t looking strong right now.
The MA50 and the weekly Supertrend have both been lost.
We need to see a bounce soon! pic.twitter.com/1uPWONUnpj
— Crypto Rover (@cryptorover) November 17, 2025
Chart data supports that sentiment. The daily Relative Strength Index (RSI) has fallen to the low-30 range — typically associated with oversold territory — and the MACD continues trending downward with widening histogram bars.
From a technical perspective, the market is stretched, but oversold conditions alone do not guarantee a recovery unless reinforced by improving spot demand.
Whale-Driven Uncertainty Adds to Volatility
Another variable adding tension is activity among large holders. Over the last 72 hours, nearly $1 billion worth of Bitcoin has been sent to exchanges. More than 10,000 BTC moved in a short window, an amount large enough to influence short-term price action.
The move has triggered speculation about an impending sell-off — and the counter-theory that these inflows may represent a classic whale trap designed to lure late shorting behavior before a reversal.
Nearly $1 BILLION in Bitcoin just hit exchanges in 72 hours 😳
10,000+ $BTC suddenly moved.
Sell-off loading… or whale trap? pic.twitter.com/NS6e20QofI
— Crypto Patel (@CryptoPatel) November 17, 2025
At the same time, exchange supply is rising, often interpreted as a negative signal because Bitcoin tends to be moved to exchanges when market participants intend to sell.
Can Bitcoin Hold $94,000?
The coming days may prove critical. If Bitcoin manages to maintain support near current levels and absorb selling pressure, the crowded short market, oversold technical structure, and liquidity buildup could ignite a powerful upward reaction. However, a decisive close below the current range risks accelerating downside momentum and invalidating the short-squeeze thesis.
Both bullish and bearish catalysts are currently active, and neither side holds a clear advantage. Traders seem to agree on only one thing: volatility is far from finished.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alexander Zdravkov is a person who always looks for the logic behind things. He has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.
