Crypto Markets Today: Bitcoin Pressures $120K as Traders Brace for Potential Short Squeeze

Bitcoin continues to challenge the $120,000 resistance, putting it in a position for potential record highs. Current futures open interest is above $32 billion, with basis rates nearing 8%. However, indications show mixed sentiments in the derivatives market, with some exchanges exhibiting aggressive long positions and others reflecting more neutral funding rates. The options market suggests a cooling of bullish sentiment, indicated by a decline in call volumes. Despite this, altcoins like ETH and SOL are experiencing significant gains while some smaller caps falter. The overall market shows a behavior where Bitcoin’s consolidation allows capital to flow into more speculative altcoin investments, generating sharp gains for certain tokens. Yet, some have faced steep declines amid ongoing risk factors. As Bitcoin approaches $120,000, traders are alert for potential short squeezes which could further elevate prices. Overall, the broader cryptocurrency market remains buoyant, with significant trading volume reflecting ongoing investor interest.

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