Bitcoin stands back at $110,000! Analysts warn: Market bearish sentiment intensifies, but short squeeze scenario cannot be ruled out. This article summary is generated by AI. Bitcoin has recently broken through $110,000 again, but market sentiment still shows a high bearish trend. Analysts point out that the bearish forces are strengthening, and traders lack confidence in Bitcoin's continued rise. However, if the price unexpectedly breaks through the historical high, it could trigger short covering, prompting a rapid rise in the market. Bitcoin again crossed the $110,000 mark yesterday (3rd), and market sentiment gradually warmed up, with some analysts suggesting that Bitcoin may soon challenge its historical high again. However, CoinDesk cryptocurrency analyst Oliver Knight's latest interpretation points out that market data shows traders still hold a high bearish sentiment. (Previous context: Breaking News》Bitcoin breaks through $110,000 again) (Background supplement: Arthur Hayes' "The Price Relationship of Stablecoins" full text: Stop buying Circle stock, go long on Bitcoin) Just entering July, Bitcoin again crossed the $110,000 mark yesterday (3rd), and market sentiment gradually warmed up, with some analysts suggesting that Bitcoin may soon challenge its historical high again. However, CoinDesk cryptocurrency analyst Oliver Knight's latest interpretation points out that market data shows traders still hold a high bearish sentiment. Price surged, sentiment turned bearish. Knight pointed out that Bitcoin's long-short ratio dropped sharply from 1.223 to 0.858 in just a few days, indicating that bearish forces are continuously increasing. At the same time, the total open interest for shorts also jumped from $32 billion to $35 billion. Knight believes that this reflects traders' lack of confidence in Bitcoin maintaining its upward trend and that they are increasingly hedging risks through adding short orders. Additionally, according to an FXStreet report on July 2, the RSI has shown a bearish divergence; whenever Bitcoin's price challenges the $110,000 mark, the momentum indicator tends to weaken. Knight also pointed out that Bitcoin has been oscillating between $100,000 and $110,000 recently, causing short-term traders to continuously short at resistance levels and cover at support levels, forming a high-frequency "hit and run" strategy. Short accumulation, the seeds of short squeeze sprouting. However, while short positions have brought downside pressure, they have also sown the seeds for a "short squeeze" opportunity. Knight points out that once the price unexpectedly breaks through the historical high, triggering short stops and forced cover, the bears will be forced to buy back Bitcoin, and buying pressure could quickly push up the market. Knight describes this scenario in one sentence: "The impulse of buying will drive continuous rise." Related reports: Choosing to buy MSTR stock at a 75% premium instead of Bitcoin at $100, has Wall Street gone mad? The biggest risk of Bitcoin hasn’t exploded yet, but this may also be your biggest opportunity. The founder of SkyBridge Capital warns: Companies hoarding Bitcoin must cool down, investors can buy coins directly without needing to buy ETFs and pay a premium. This article was first published on BlockTempo, the most influential blockchain news media. #Gate上线xStocks交易 #Gate用户突破3000万 #特朗普马斯克分歧