Glassnode: Bitcoin Seller Pressure Fading as Record Shorts Create Short-Squeeze Risk

Bitcoin Trapped Between Key Support and Resistance

Bitcoin is trading in a tight range between the $65,000–$70,000 support zone and $79,000 resistance, according to a new report from on-chain analytics firm Glassnode. The analysts highlight diminishing selling pressure and a record concentration of short positions on the futures market — a setup that could trigger a sharp upward move.

BTC has repeatedly failed to hold above the True Market Mean price of $79,000. Each approach to this level prompted short-term holders to aggressively take profits, with realized volume reaching $4 billion per hour. This selling wave absorbed buyer-side liquidity and stalled the rally.

«Glassnode: Bitcoin is wedged between the $65K–$71K support cluster and the $79K True Market Mean resistance. The $65K–$71K zone is a key accumulation range — losing it would weaken the short-term outlook.» — Glassnode, original post

Why This Matters

The market structure described by Glassnode sets the stage for a potentially explosive price move. Weakening sell pressure combined with record-high short positions creates textbook conditions for a short squeeze — forced liquidation of shorts that could drive a rapid price increase.

The $65,000–$70,000 accumulation cluster serves as the critical support floor. According to Glassnode, losing this zone would significantly deteriorate Bitcoin's short-term outlook.

Institutional Flows Return While Bears Dominate Futures

The buy-sell volume delta on the spot market is recovering toward neutral levels, signaling that selling pressure is indeed subsiding. At the same time, institutional investors appear to be re-entering the market: assets in spot Bitcoin ETFs and open interest on CME are growing after a prolonged period of outflows.

The perpetual futures market tells a different story — bearish sentiment dominates, with traders actively building short positions. Glassnode analysts view this configuration as favorable for forced short closures, noting that even a modest increase in spot demand could trigger cascading liquidations.

Options Market Bets on Breakout Above $80,000

Bitcoin's volatility continues to decline, and demand for downside protection through put options has dropped. Options market participants are instead positioning for a breakout above $80,000. A move past this resistance would force market makers to buy BTC to hedge their exposure on sold call options, further amplifying upside pressure.

Until fresh capital enters the spot market, Bitcoin is likely to continue ranging within its current narrow band, Glassnode concluded.

Macro Backdrop

On April 29, Bitcoin and several other crypto assets declined following the U.S. Federal Reserve's decision to keep interest rates unchanged. The decision added uncertainty to the market and weighed on risk assets across the board.