Aug 6, 2025
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Bitcoin Faces Volatility with Potential Short Squeeze Ahead
Bitcoin's price has shown high volatility, briefly approaching its all-time high before dropping to $112,000, influenced by unexpected jobs data. Analyst CrypNuevo predicts a potential short squeeze targeting liquidity clusters at $116,800 and $119,000.
- Current Bitcoin price is at $115,470, displaying signs of recovery.
- Short squeezes occur when the price surges, triggering liquidations from short-sellers, which further boosts the price.
- CrypNuevo previously noted significant liquidation clusters between $113,600 and $114,500.
- Recent macroeconomic factors have impacted both Bitcoin and S&P 500 performance.
- A favorable macro scenario could lead Bitcoin toward the $119,000 range, increasing market volatility.
Chart showing correlation between Bitcoin and S&P 500 prices.