Bitcoin’s rebound from last week’s steep decline is renewing debate across the market, as improving conditions hint at a possible short squeeze toward $90,000. The cryptocurrency has climbed back into the $87,000 to $90,000 region after falling from $106,000 to $80,600 in 10 days. While large holders continue selling, negative funding rates and strong mid-tier accumulation are shifting sentiment.
The recovery has fueled speculation about a potential local bottom, even though a key whale group is still unloading supply. Yet demand from accumulation-focused wallets and the cooling of leveraged longs show that market dynamics are changing.
On-chain data reveals a clear split between big players and mid-tier investors. Wallets holding more than 10,000 BTC, along with those holding 1,000 BTC to 10,000 BTC, have kept reducing exposure. Retail wallets with under 10 BTC also remained net sellers over the last 60 days and offered limited support. However, mid-sized holders in the 10–100 BTC and 100–1,000 BTC ranges continued buying throughout the correction. Their steady accumulation absorbed part of the selling pressure.
This shift became stronger when Bitcoin accumulator-address demand reached a record 365,000 BTC on Nov. 23, up from 254,000 BTC on Nov. 1. The surge reflected rising long-term confidence even as larger wallets maintained their distribution trend. The balance between steady selling at the top and growing accumulation in the middle may help stabilize the market and support a move back toward $90,000.
In the futures market, conditions are also changing. The recent crash was driven by cascading long liquidations, margin calls, and forced selling, which pushed Bitcoin into the $80,000 zone. CryptoQuant noted that traders who tried to long the drop were “squeezed out,” as funding rates cooled and briefly turned negative. Since Binance’s neutral funding level sits near 0.01%, any move below that level signals short dominance. This shift often appears when traders capitulate late in a correction.
Analyst Darkfost warned that rising short interest during a slow grind upward could create a “disbelief phase.” This environment often sets the stage for a strong short squeeze. Heatmaps from Hyblock Capital support that view. Long liquidations totaled $2.6 billion at $80,000, while short liquidations climbed above $8.4 billion near $98,000. Liquidity pockets at $94,000, $98,000, and $110,000 may act as price magnets if momentum builds.
With negative funding, growing short exposure, and renewed accumulation, Bitcoin is entering a zone where a sharp squeeze becomes increasingly likely. Traders are now watching to see if these conditions push BTC toward $90,000 and into the higher liquidity levels above it.