- Traders are more likely to hold on to their Bitcoin instead of selling it.
- Occasional long squeezes suggest that traders are not that optimistic.
- If there are fewer short sales of Bitcoin, it might mean that confident buyers are expecting the market to go up.
Axel Adler Jr. brought up a key shift in how traders are behaving during the current bull run. He concluded in his findings that fewer traders are currently opening short positions in expectation of falling prices as compared to the previous bull market.
This shift in investor psychology reflects a general sense of caution to forecast bearish moves, and many view it as bullish indicators.
Current Bull Market Experiences Fewer Significant Long Squeezes
One important finding in Adler’s observation is that long squeezes have been rare during this cycle. A long squeeze occurs as traders who have invested during increasing prices decide to cut their losses by selling their positions.
He finds that long squeezes have only occurred once, near the low around $80,000 when the current bull market experienced a corrective period. Except for this one instance, long positions in the market have been seldom closed out, indicating that traders expect more upwards movement.
Chart Reveals how Traders are Adapting the way They Approach Market Risks
This update is supported by a chart featured in the post, taken from CryptoQuant and titled “Bitcoin Advanced Short/Long Squeeze Signal.” The graph displays Bitcoin’s price movements alongside measures such as bullish and bearish liquidations, as well as the squeeze signal indicator.
Source: X @AxelAdlerJr
It spans the years 2020 to mid-2025, offering a clear view of market changes moving from bear to bull markets and vice versa.
The chart shows a congestion of both longs and shorts during 2021, indicating the elevated risk and active trading of that period. There were fewer trades between 2023 and 2025, and open interest steadily increased as prices remained relatively stable at about $80,000 for BTC’s price.
This development takes on special significance in the maturing stage of the crypto market. The decrease in bearish shorting activity limits the possibility of sharp price reversals. Howeve r, this may lead to a smoother growth curve for Bitcoin.
