- Bitcoin’s V-shaped recovery to $107K signals renewed investor confidence amid $23.8B in shorts and high MVRV ratios pointing to strength.
- Massive short exposure near $107,627 on Binance could trigger a short squeeze as leverage spikes and bullish sentiment strengthens.
- Rising MVRV ratios and consistent trading volume reflect growing market conviction as long-term holders sit on strong unrealized gains.
May 19, 2025- Bitcoin has recovered, surpassing $107,000. This has been after months of sharp price oscillation, increasing investor confidence, and high liquidation risk. According to data from Coinglass, $23.8 billion worth of short positions are opened on Binance. If Bitcoin continues its march upwards, the shorts may be liquidated, potentially creating one of the largest short squeezes.
The price direction from January to May 2025 shows a pronounced V-shaped pattern. Bitcoin peaked near $100,000 in January before plunging to lows of $65,000 by mid-April. This 35% correction shocked the market. However, the digital asset mounted a strong rebound in late April, regaining lost ground and breaking the $107,000 level in May.
Leverage Soars as Shorts Pile In
Besides the price surge, the Binance liquidation heatmap signals short exposure at $107,627. This level is now a crucial battleground. Hence, a continued rally could trigger rapid short liquidations. Consequently, this would intensify upward price pressure, creating a classic short-squeeze scenario. Market volatility remains elevated as traders brace for sharp moves.
Additionally, trading volume has stayed consistent, with spikes during key price reversals. January’s breakout and April’s recovery both saw surging volume. This reflects increased participation and growing momentum. Coinglass’s clear interface shows price levels from $43,000 to above $100,000, tracking Bitcoin’s wild ride through 2025’s first half.
MVRV Trends Signal Investor Confidence
Moreover, Glassnode data highlights surging MVRV ratios, offering insight into market sentiment. The general MVRV sits at 2.33, while LTH-MVRV is at 3.30. These elevated levels indicate strong unrealized profits among long-term holders. Besides boosting confidence, this trend also reduces selling pressure across the market.
Source: Glassnode
Short-term holders (STH-MVRV) reflect more volatile behavior, with a current ratio of 1.13. During rallies, this measure rises, and during corrections, it lowers. Its recent increase indicates that younger investors are feeling more optimistic.
After a downturn in mid-2024, Bitcoin has rebounded to reach new highs. Deep market positioning and positive on-chain indications continue to underpin the robust price momentum. Moreover, sustained investor conviction and high leverage suggest further volatility in the weeks ahead.
