- Bitcoin price setup points to potential short squeeze.
- Selling pressure drops as supply turns illiquid.
- Institutional demand continues to grow.
Bitcoin price action is now sending mixed signals as it struggles to break past the key $75,000 resistance level. While the recent rejection and bearish candlestick formation have led many traders to anticipate a pullback, derivatives data point to a buildup of short positions in the market.
This imbalance could prove significant. Negative funding rates and rising open interest suggest that traders are increasingly betting against BTC, even as selling pressure appears to be easing.
Meanwhile, institutional inflows continue to strengthen. This hints at a shift in market structure that may favor the upside and increase the likelihood of a short squeeze.
Bitcoin Price Sees Strength amid Rising Short Positions
Although BTC is showing positive signals, it is struggling to soar past key levels. While the Bitcoin price recently saw a significant rally toward the critical $75k level, it faced rejection, forming a “shooting star” pattern.
This is revealed by analyst Michael van de Poppe, via an X post today. According to him, the shooting star formation has sparked caution among traders as they expect a pullback. However, looking beyond this single signal, the broader market setup tells a different story.
The analyst stated that funding rates have turned negative. The analyst stated that funding rates have turned negative. It means that a large number of traders are still well-hedged from the downside even as BTC tries to break through important resistance levels. On the other hand, there is an increase in the open interest, signalling increased interest among market participants. In the case where such a scenario works in favor of the bears, more tries could result in a breakout.
Despite short-term bearish sentiment, the Bitcoin price continues to form higher lows and higher highs on a lower timeframe. This shows sustained demand for the cryptocurrency. As long as BTC holds above the $72k level, the overall structure remains strong.
Further, the analyst stated that if momentum builds and resistance breaks, the next major zone to watch could be between $85,000 and $88,000. This makes the current setup more favourable for upside.
Bitcoin Supply Tightens as Wholecoiner Activity Declines
Another major development within the Bitcoin ecosystem is the decline in the activity of “wholecoiners,” or those who hold at least 1 full BTC. In an X post, CryptoQuant analyst Darkfost noted,
“This decline in active wholecoiners reflects both reduced selling pressure and a gradual transformation of market structure, with a growing share of supply becoming increasingly illiquid over time.”
As the Bitcoin price rises, the wholecoiners are becoming less active on exchanges, as it is becoming harder to accumulate a full BTC. Data shows that large transfers to exchanges have dropped significantly. On Binance, flows fell to around 6,000 BTC per month.
Bitcoin Wholecoiner Flows on Binance Drop Sharply
“This decline in active wholecoiners reflects both reduced selling pressure and a gradual transformation of market structure, with a growing share of supply becoming increasingly illiquid over time.” – By @Darkfost_Coc pic.twitter.com/yU9gNI75Gf
— CryptoQuant.com (@cryptoquant_com) April 15, 2026
This trend also reflects a broader shift in the market. Investors now have more ways to gain exposure to BTC, including ETFs. Thus, many are opting for other possible ways than holding the coin directly. As a result, selling pressure is decreasing, and a larger share of supply is becoming illiquid. This indeed could support the Bitcoin price going forward.
Morgan Stanley Accumulates Bitcoin
Amid the current Bitcoin price rally, Morgan Stanley is increasing its exposure to BTC through its MSBT ETF. This signals growing institutional interest in BTC. Data shows that the fund has already purchased around $83.6 million worth of Bitcoin shortly after launch. About $64.4 million is currently held in its on-chain addresses.
This development highlights how large investors are actively entering the market. The rise in institutional accumulation underscores the community’s conviction in the Bitcoin price’s long-term potential.
