Bitcoin analysis sees $89K short squeeze with S&P 500 2% from all-time high

William Suberg 3 minutes ago Bitcoin analysis sees $89K short squeeze with S&P 500 2% from all-time high Bitcoin fielded new predictions of a short squeeze as price kept up pressure on key resistance at $88,000, while US stocks went higher. Listen 0:00 28 Market Update COINTELEGRAPH IN YOUR SOCIAL FEED Bitcoin ( BTC ) hovered near $87,000 at the Wednesday Wall Street open as analysts eyed short liquidations. Key points: Bitcoin liquidity conditions analysis predicts a return toward $90,000 next. Range-bound short-term price moves see trader bets pile in either direction. US macro data gives stocks a modest boost but fails to sway crypto. Liquidity could see BTC “pulled up” toward $89,000 Data from Cointelegraph Markets Pro and TradingView showed flat BTC price action characterizing the day’s trading. BTC/USD one-hour chart. Source: Cointelegraph/TradingView A lack of volatility allowed liquidity to build either side of price, with $88,000 now an area of interest for trading resource TheKingfisher. “There are a lot of short liquidations for $BTC on Binance around $88,253.90, which means the price could get pulled up towards that level,” it explained in a post on X . BTC order-book liquidity data. Source: TheKingfisher/X Crypto investor and entrepreneur Ted Pillows flagged $89,000 as the key reclaim level for shorts to feel the pain. “If BTC reclaims the $89,000 level, upside liquidity will be swept first. If Bitcoin loses the $85,000 level, the downside liquidity will be taken out before a bounce back,” he told X followers the day prior. Data from monitoring resource CoinGlass put the major liquidity draws at $84,500 and $88,500 at the time of writing. BTC liquidation heatmap. Source: CoinGlass Crypto analyst Lennaert Snyder noted that the long/short ratio among traders was “roughly 50/50” into $89,000 resistance. “We need Bitcoin to eat some stop losses and grab fuel before the next directional move,” he commented. “Two scenario's I like is either we gain $89K, or sweep the $80.6K lows and bounce back.” Bitcoin steady as S&P 500 heads higher The day’s macroeconomic data prints had little impact on the stubborn BTC price action. Related: Bitcoin price bottom due ‘this week’ with BTC down 20% in November US jobless claims came in below expectations, potentially reflecting strengthening labor-market conditions. Despite this, stocks climbed after the open, while bets of a Federal Reserve interest-rate cut in December remained favorable to risk assets. CME Group’s FedWatch Tool put the odds of a 0.25% cut at the Fed’s Dec. 10 meeting at 83% at the time of writing — up considerably from 30% just a week prior. Fed target rate probability comparison (screenshot). Source: CME Group While acknowledging rising fear levels, trading resource The Kobeissi Letter stressed that the S&P 500 was now just 2% away from fresh all-time highs. “Asset owners are winning,” it concluded. Investor fear levels are rising: The cost of a 5-year put option protecting against at least a -55% drop in the S&P 500 has risen to 46 basis points, the highest since the April sell-off. Excluding April, this is the highest level in at least 2 years. This means investors are… pic.twitter.com/5SEXCSpfjy — The Kobeissi Letter (@KobeissiLetter) November 26, 2025 This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. # Bitcoin # Bitcoin Price # Markets # Stocks # Market Analysis Add reaction