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Bitcoin squeeze: are traders preparing for a big move?

Bitcoin Squeeze | Anticipated Pressure Builds as Traders Bet Short

By

Nina Petrova

Feb 12, 2026, 07:20 PM

Edited By

Priya Narayan

3 minutes needed to read

Traders monitor Bitcoin price charts with expressions of concern and anticipation, hinting at a potential market shift.
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A significant short squeeze is on the horizon in the Bitcoin market, with numerous traders placing their bets against the cryptocurrency. This surge of short positions has sparked discussions about a potential dramatic price shift on various forums, leaving many to ponder how low Bitcoin might go ahead of a possible rebound.

Context of the Current Market

Traders are divided on the future of Bitcoin. Many think that with such a high volume of short selling, the market could see a swift and significant correction. As one commenter pointed out, "Timing the bottom or the top doesn't work. If you believe in the asset, buy and hold."

Interestingly, users expressed skepticism about the confidence of others predicting imminent price movements. One user remarked, "Another degenerate claiming to know shit about fuck," showing a mix of skepticism and humor in the face of uncertainty.

Key Themes from the Discussions

  1. Optimism Amid Uncertainty: Despite fears, many continue to purchase Bitcoin, suggesting faith in its long-term potential. One trader mentioned, "Just slowly stacking," indicating a strategy focused on accumulation rather than fast gains.

  2. Market Predictions: Opinions vary greatly on Bitcoin's future trajectory. While some foresee a short squeeze from lower levels, others expect significant shifts in the next quarters, with speculation around the next halving cycle in 2028. One post states, "I expect a slow squeeze starting in the 4th quarter… that squeeze will last exactly 3 years."

  3. Mixed Sentiments on Information: There are concerns over the reliability of market information, with one user noting, "Way too much lately ahem… paid shills are out en-masse," indicating distrust in some sources.

"I believe it will squeeze, but from lower levels. We haven't seen the bottom yet IMO," articulated a user hitting a common view within the community.

Sentiments in The Community

The overall sentiment in discussions represents a mixture of cautious optimism and critical skepticism. Many people are buying Bitcoin, believing in eventual recovery. However, some remain doubtful, highlighting the unpredictability of the market.

Takeaway Points

  • Market Dynamics: High short interest may indicate an upcoming price spike.

  • Strategic Mindset: Long-term investment remains key, as echoed by multiple comments.

  • Traders' Awareness: Not everyone trusts the information circulating in forums, suggesting a need for personal research.

Shifting Tides in the Crypto Sea

In the coming weeks, traders should prepare for significant volatility in the Bitcoin market. There's a strong chance of an upward price shift as the high ratio of short positions might trigger a squeeze. Estimates suggest that around 60% of traders are currently betting against Bitcoin, which could lead to a surge in price if these positions start to close. Additionally, as we approach the fourth quarter of 2026, many are predicting a slow accumulation phase that could solidify Bitcoin's support level. Whether this potential rebound leads to a sustained rally will depend largely on broader market conditions and investor sentiment.

A Bit of History Rhyming with Today

This situation recalls the days of the tech bubble in the late 1990s. Just like now, stock market participants were eagerly discussing when the next big shift would happen, with many betting against rising stocks. When the bubble burst, some investors thought they could time the market perfectly, only to discover too late that holding onto solid assets often proved wiser than trying to outsmart the waves. Just as tech stocks eventually rebounded and many found fortune by holding on, today's Bitcoin investors may indeed find that patience pays off in this unpredictable landscape.