As Bitcoin (BTC) trades near $110,000, traders are eyeing a potential breakout to $115,000, a key level that could trigger a massive short squeeze and liquidate more than $7 billion in bearish positions, according to onchain and derivatives market data.
Profit-Taking Persists Amid Bullish Macro Tailwinds
On May 27, Bitcoin briefly surged to $110,700, supported by a strong U.S. equities open and the Trump Media and Technology Group’s announcement of a $2.5 billion capital raise for a Bitcoin treasury. While bullish momentum remains intact, onchain indicators show that investors are increasingly locking in profits.
“Bitcoin’s current rally is being driven by macro easing and favorable risk conditions,” according to Ecoinometrics, a macroeconomic-focused BTC newsletter.
The National Financial Conditions Index (NFCI), published by the Federal Reserve Bank of Chicago, has shifted rapidly into “ultra-loose” territory after tightening earlier in 2025. Looser financial conditions typically drive capital into high-beta assets like Bitcoin, igniting risk-on behavior.
Short-Squeeze Watch: $115K as the Trigger
According to CoinGlass, more than $7 billion in short positions would be liquidated if BTC breaches $115,000. This setup could spark a parabolic move, as forced buybacks add upward pressure to the price.
“Liquidity has returned, and we’re seeing the same capital rotation pattern that sparked rallies in 2023 and 2024,” Ecoinometrics wrote. “Bitcoin thrives in this macro backdrop.”
If a squeeze unfolds, it could mark the beginning of a new market leg higher, especially as institutional investors continue entering the space via ETFs and treasury-backed initiatives.
Onchain Data Warns of “Overheated Zone”
Despite bullish momentum, caution is warranted. Two critical onchain metrics—Supply in Profit Market Bands and the Advanced Net UTXO Supply Ratio—are now flashing signals historically associated with local market tops.
- The Supply in Profit Market Bands shows 19.4 million BTC currently in profit, nearing the “Overheated Zone.”
- A similar pattern was observed on December 17, 2025, which preceded a sharp correction from $107,000 to $93,000.
Conclusion: Cautious Optimism Ahead of Key Level
While Bitcoin’s momentum remains strong, investors must weigh the risk of near-term profit-taking against the potential $7B short liquidation above $115K. The coming days could prove pivotal for BTC’s next major move.