Binance users have recently continued to take on aggressive short positions. Since Bitcoin reached $123,000, traders have been following the price with a heavy reliance on market sell orders. While the price moves upward, Binance derivatives CVD has been trending down, signaling a strong possibility of a short squeeze in the near future.
Funding rates are currently at neutral levels, suggesting that overall long and short positions are balanced. However, digging deeper reveals that the majority of new positions are driven by market sell orders. This means that while the surface looks balanced, retail traders are heavily adding selling pressure into the market.
Looking at Binance CLD, 2025 has already seen massive cumulative liquidation delta events. This confirms that traders moving against the price action are repeatedly being used as fuel. As Bitcoin pushed toward $124,000, there was no significant explosion of short liquidations. Instead, the delta has recently shown an upward trend, pointing to the fact that long positions have been forced out — suggesting the game has temporarily shifted against longs.
📌 In summary:
Sentiment on Binance appears neutral overall, with no extreme imbalance.
CVD highlights that retail traders chasing price action are piling into shorts.
CLD shows that after wiping out shorts, market makers are now targeting long liquidations before likely returning to squeeze the short side again.
Ultimately, the market is still trading within a range, but Binance derivatives data strongly indicates that a major squeeze scenario is on the horizon.
Written by BorisD
