As June 2025 draws to a close, Bitcoin (BTC) finds itself at a critical technical juncture, hovering between thick walls of buy and sell liquidity on exchange order books. With only hours remaining before key monthly and quarterly candlestick closes, market participants are bracing for heightened volatility — and a potential explosive move to the upside.
BTC Nears Pivotal Monthly and Quarterly Close
Recent data from Cointelegraph Markets Pro and TradingView shows BTC/USD retracing weekend gains, down 1.1% on the day as of the latest update. Despite this pullback, the broader market structure suggests mounting tension beneath the surface.
With the monthly and quarterly candles set to close imminently, traders are closely monitoring shifts in open interest, funding rates, and order book depth. These metrics often amplify price action at key expiry moments, especially when leveraged positions are concentrated around specific price levels.
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Rising Leverage Signals Building Momentum
Singapore-based derivatives firm QCP Capital noted in a recent client update that long positions are increasing as BTC approaches $108,000 in spot markets.
“With BTC spot nearing $108K, we’re seeing leveraged longs accumulate,” the firm stated via its Telegram channel. “Perpetual swap funding rates have turned positive across major exchanges after being flat.”
This shift indicates growing bullish conviction ahead of the quarter-end settlement window. As QCP Capital summarized:
“Positions are following price — participants are placing directional bets ahead of quarter-end.”
Such behavior often precedes sharp moves, particularly when one side of the market becomes overly crowded. In this case, short sellers appear increasingly vulnerable.
A Massive Short Squeeze Could Be Looming
On-chain analytics and order book data suggest that a significant cluster of short liquidation points lies between $108,000 and $108,500. TheKingfisher, a well-known trading analyst on X (formerly Twitter), highlighted this zone as a potential catalyst for a violent squeeze.
“Below, there’s a strong long liquidation zone around $106K–$107K,” they wrote. “But above? Right above current price, there’s a massive wall of short liquidations peaking between $108K and $108.5K!”
This concentration acts like a magnet — once price clears $107,500 with conviction, it could trigger cascading buy orders from forced short covers.
“This could lead to a brutal short squeeze if momentum pushes past resistance.”
Such scenarios are not uncommon in crypto markets, where high leverage and thin liquidity can turn modest moves into parabolic surges. Historical precedents — such as the January 2023 breakout or the April 2021 rally — show how quickly sentiment can flip when technical thresholds are breached.
Key Technical Levels in Focus
Rekt Capital, a respected technical analyst, offered a balanced view on BTC’s current setup. On the daily chart, Bitcoin has pulled back to retest a key support zone — one that previously fueled an upward impulse.
“After launching from this local green support area… price is now retesting it again,” he explained.
A successful hold here would validate the bullish structure and open the door for another challenge to the dominant downward trendline that has capped rallies since late May 2025.
“Sustained stability at this level makes another test of the main descending trendline (in black) likely.”
BTC/USD Daily Chart. Source: Rekt Capital/X
If Bitcoin breaks and holds above this trendline, it could signal the end of the near-term bearish phase — potentially unlocking a path toward new all-time highs in the coming months.
Macroeconomic Shifts Fuel Risk-On Sentiment
While technical factors dominate trader psychology, macro developments are adding fuel to the fire. Just days before a quiet U.S. holiday week in financial markets, news emerged that Treasury Secretary Bessent plans to begin work on selecting a successor to Federal Reserve Chair Jerome Powell.
This development has sparked speculation about a potential pivot in monetary policy — particularly if Powell is replaced by someone more dovish.
Ric Edelman, founder of Edelman Financial Services and manager of $300 billion in assets, recently advised allocating up to 40% of investment portfolios to digital assets. His endorsement underscores growing institutional appetite amid shifting macro narratives.
👉 Explore how macroeconomic trends are reshaping investor strategies in 2025.
Could Rate Cuts Trigger a Historic Rally?
The Kobeissi Letter, a respected macro research outlet, posited that if the next Fed chair slashes rates to 1% — as reportedly desired by former President Trump — it could ignite one of the largest rallies in stock and real estate history.
“We’ve never seen the Fed cut rates to 1% while equities and housing prices sit at all-time highs. The inflationary implications would be enormous — and extremely bullish for hard assets like Bitcoin.”
Though speculative, such scenarios resonate in an environment where trust in traditional fiat systems is eroding and demand for scarce digital assets is rising.
Bitcoin, often labeled “digital gold,” stands to benefit disproportionately from any sustained period of loose monetary policy. With its fixed supply cap of 21 million coins, BTC is structurally positioned to act as a hedge against currency devaluation.
Frequently Asked Questions (FAQs)
Q: What is a short squeeze in cryptocurrency trading?
A: A short squeeze occurs when rising prices force traders who bet on declines (short sellers) to close their positions, often triggering rapid buying that further accelerates price increases.
Q: Why is the $108,000 level so important for Bitcoin?
A: This zone contains a high concentration of short liquidation points across major exchanges. A break above it could trigger automated buy-ins, fueling upward momentum.
Q: How do quarterly and monthly closes affect Bitcoin’s price?
A: Institutional traders often adjust positions at month-end and quarter-end, leading to increased volume and volatility. Derivatives expiries and portfolio rebalancing can amplify these effects.
Q: Can changes in Federal Reserve leadership impact Bitcoin?
A: Yes. A more dovish Fed chair could mean lower interest rates and expanded money supply — conditions historically favorable for risk assets like crypto.
Q: Is now a good time to enter long positions in BTC?
A: While timing the market is risky, current technical and macro setups suggest asymmetric upside potential if key resistance levels break. Always conduct your own research and manage risk accordingly.
Q: What role does liquidity play in short squeezes?
A: Low liquidity magnifies price swings. When large clusters of stop-loss or liquidation orders exist in narrow price bands, even small moves can trigger outsized reactions.
Final Outlook: A Confluence of Forces
Bitcoin stands at the intersection of powerful technical, on-chain, and macroeconomic forces. The convergence of a pivotal monthly close, concentrated short positions above $108,000, and potential shifts in U.S. monetary leadership creates a fertile environment for explosive price action.
While pullbacks remain possible — especially with long-term trendlines still acting as resistance — the underlying momentum favors bulls if support holds.
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Traders should monitor funding rates, order book depth, and macro headlines closely over the coming days. A decisive close above $108,500 could mark the start of a new leg higher — possibly one of the most significant moves of 2025.
As always in crypto, volatility cuts both ways. But for those watching closely, the signals suggest that a “brutal” short squeeze may be just hours away.
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