TL;DR:
- Bitcoin trades slightly above $90,000 amid high selling pressure.
- Crowded short positions could trigger a rapid short-covering rally if support holds.
- Nearly $1B BTC moved to exchanges, creating uncertainty and possible volatility spikes.
Bitcoin is struggling to regain momentum after a week of intense selling pressure and surging exchange inflows. Currently trading slightly above $90,000, the market is divided between hopes of a relief rally and fears of a deeper correction. Analysts note that long positions are unwinding while short exposure grows, crowding one side of the market and setting the stage for potential volatility.
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
Crowded Shorts Could Fuel a Squeeze
Technical metrics indicate a heavily crowded short market, with most leveraged long positions already liquidated. Traders like Michaël van de Poppe argue that Bitcoin may need to stabilize between $89,000 and $92,000 to enable a fast upside move. A higher low could trigger a short-covering rally, particularly if BTC maintains support near $90,000 and absorbs selling pressure from exchanges.
Market sentiment shows that while the RSI signals oversold conditions, momentum indicators remain weak. Crypto Rover highlights that BTC has lost the 50-week moving average and flipped the weekly Supertrend to bearish, historically preceding extended corrective periods. MACD trends downward, and the daily Relative Strength Index sits in the low-30 range, hinting at stress despite potential rebound signals.
Adding complexity, whales moved nearly $1B worth of Bitcoin to exchanges in the past 72 hours. Large holders transferring over 10,000 BTC could signal either a pending sell-off or a strategic whale trap to trigger late short positions before a reversal. Exchange inflows are typically interpreted as bearish, increasing uncertainty and volatility in the short term.
Traders are watching closely to see if Bitcoin can hold $90,000 support. Absorbing selling pressure and stabilizing in this range could unleash a sharp upward reaction fueled by the crowded short market and oversold technicals. Conversely, a decisive close below this level may accelerate downside momentum and invalidate the potential for a short-covering rally. Both bullish and bearish catalysts are present, leaving the market in a state of heightened uncertainty.
