Bullistanza: Bitcoin Challenge to $111,970 Blocked amid Short Position Risk

Bitcoin is struggling to breach its May all-time high of $111,970, leaving traders cautious at current levels, according to Bitfinex analysts.

“Bulls remain hesitant without new catalysts or clearer macro signals to push prices significantly higher,” Bitfinex analysts stated in a markets report on Tuesday, noting Bitcoin displayed weaker strength as it attempts to surpass the previous peak.

Short Positions Under Pressure

Reclaiming the $111,970 mark could trigger the liquidation of $1.63 billion in short positions, according to CoinGlass data.

While the cryptocurrency briefly dipped below $100,000 on June 22 amid Middle East tensions but quickly rebounded, that momentum has faded. CoinMarketCap data showed Bitcoin trading at $108,560 at the time of publication, representing a 2.15% increase over the preceding seven days.

Market in Delicate Equilibrium

Bitfinex analysts characterize the current Bitcoin market structure as a “delicate equilibrium.” Reduced profit-taking pressure coexists with low buying interest, suggesting traders await compelling directional confirmation. Since June 23, Bitcoin has consolidated between $100,000 and $110,000.

“The broader trend has stalled,” the analysts concluded. “Lack of sustained momentum indicates buyer hesitation,” they added, while acknowledging the market is awaiting a “fresh catalyst” for definitively establishing the next directional leg.

Contradicting Signals from Social Media Sentiment

According to Santiment data released Tuesday, Bitcoin social media sentiment is the highest it has been in three weeks. The bullish-to-bearish ratio now stands at 1.51:1.

However, Santiment analyst Brian Quinlivan cautioned that historically, such peaks in trader optimism have often preceded Bitcoin price declines (observed on June 11 and July 7).