Bitcoin, Ethereum, XRP Steady, but Dogecoin Dips: Analyst Bets a Repeat of BTC's Short Squeeze, Driving It Toward $90,000

On Wednesday, leading cryptocurrencies exhibited minimal movement as market participants showed a cautious approach toward risk. Bitcoin fluctuated between $73,202 and $74,694, facing significant selling pressure from bearish traders. Ethereum struggled to surpass the $2,100 mark, while Dogecoin experienced a slight decline of 0.50% within a 24-hour period.

In contrast, stocks associated with the cryptocurrency sector saw gains, with Strategy Inc. (MSTR) increasing by 1.06% and Bitmine Immersion Technologies Inc. (BMNR) rising by 6.33%. The cryptocurrency market faced a notable liquidation event, with nearly $290 million wiped out in the last day, primarily from bullish long positions, as reported by Coinglass.

Bitcoin's open interest decreased by 2.44% over the last 24 hours. A reduction in open interest, especially when accompanied by a rising price, often signals short covering, where traders who have bet against the asset are buying back contracts to close their positions.

On the stock market front, the Dow Jones Industrial Average rose by 254.60 points, translating to a 0.49% increase, closing at 52,486.49. The S&P 500 saw a rise of 1.31%, finishing at 7,619.3, while the Nasdaq Composite climbed 1.60% to end at 25,466. CoreWeave Inc. (CRWV) recorded a remarkable 24% surge, marking its most significant single-day gain since June 3, 2025, and reinvigorating interest in artificial intelligence stocks, including chipmakers and memory producers.

Looking ahead, cryptocurrency analyst Michaël van de Poppe highlighted Bitcoin's support at its 200-day moving average around $73,200, indicating a slow upward trend on the daily chart. He stated, "First step to break through: $75,000. If that breaks, we’re getting into better territory," suggesting that a successful breach of this level could lead to further gains.

Van de Poppe shared his outlook on Twitter, emphasizing the importance of Bitcoin maintaining its position above the 200-day moving average and gradually advancing in value.

Another analyst, known as CrediBULL Crypto, expressed optimism for a potential short squeeze similar to previous market behavior when Bitcoin's open interest was high. He predicted a rapid price increase, stating, "My bet is they are gonna run it back again this time. Short squeeze from $72,000 to $90,000 in a few days." CrediBULL Crypto referenced a prior instance where Bitcoin's open interest at similar levels led to a swift surge from $62,000 to $80,000 within a short timeframe.

The cryptocurrency market remains on edge, with traders closely monitoring price movements and market indicators for signs of potential volatility. As the situation develops, both bullish and bearish sentiments continue to shape the landscape of digital assets.