3 Crypto Assets Most Prone to Short Squeezes

Jakarta, Pintu News – The world of crypto trading is known for its volatility, and one phenomenon that often surprises traders is the short squeeze. This is when an asset’s price spikes sharply due to a massive liquidation of short positions, triggering additional buying pressure and making the price rise even faster.

Some crypto assets are noted to be “victims” of short squeeze more often due to their volatile characteristics and are often targeted for speculation by derivatives traders. This article will discuss three crypto assets that are most often affected by the short squeeze effect.

Bitcoin

According to a Cointelegraph report, Bitcoin (BTC) rallied back above the $120,000 support level at the opening of Wall Street trading on Friday (October 3), with analysts predicting a potential new short squeeze.

Read also: Uptober 2025: Could Bitcoin and Ethereum Be Poised for a Rally After an Early Dip?

The data above shows that short-term BTC price volatility is starting to subside. The BTC/USDT pair printed a local high ahead of the daily close, with the $121,100 area now a resistance target to break.

Popular trader CrypNuevo highlighted the presence of ask liquidity in the upper area as the next target. “Liquidation at $120,000 has been swept away,” he explained in an analysis on the X platform.

Meanwhile, data from CoinGlass revealed an accumulated bid around $118,500, which has the potential to become a new support in the event of a market correction.

Regarding retracement opportunities, BitBull traders think that a surge in open interest (OI) in the derivatives market could be a trigger.

“In the next 1-2 weeks, BTC and altcoins will likely experience a massive leverage flush,” he wrote on X.

Ethereum

Ethereum (ETH) experienced a significant decline on September 22-25, falling from the $4,500 range to below $3,800 accompanied by a surge in selling volume. However, the price has since reversed direction with strong momentum, supported by increasing buying volume. In recent days, ETH managed to break back to $4,200-$4,300 and is now stabilizing above $4,400.

Technical Indicators:

• MA 7 (purple) $4,478 – almost parallel to the current price, is a short-term trend reference.
• 25 MA (red) $4,304 – now acting as dynamic support.
• MA 99 (light blue) $4,264 – has been successfully broken to the upside, signaling bullish sentiment is gaining strength.

The rapid rise from below $3,800 to above $4,400 in a short period of time signaled a possible short squeeze. Traders who opened short positions below $4,000 were forced to close their positions as the price surged, triggering additional buying pressure that accelerated ETH’s rally.

Read also: Altcoin Season Arrives? XRP and AVAX Get Big Push from Institutions

Solana

Solana (SOL) was pressured from the $250 level to below $190 on September 24-27, showing a significant correction phase. However, the price soon bounced back strongly, breaking back through the resistance level at $220 and now trying to hold in the $230-$231 area.

Technical Indicators:

• MA 7 (purple) $231.25 – serves as short-term resistance, almost parallel to the current price.
• 25 MA (red) $219.04 – now an important support in the recovery phase.
• MA 99 (light blue) $220.59 – already broken to the upside, indicating a potential new bullish trend.

The quick spike from below $200 to above $230 in a short period of time was potentially triggered by the liquidation of short positions. Traders who bet the price would drop below $200 were forced to close their positions when the SOL rose, thus creating additional buying pressure that amplified the rally.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Cointelegraph. Bitcoin due for squeeze as record $88B open interest sparks ‘flush’ worries. Accessed on October 3, 2025