The derivatives market is causing selling pressure as Bitcoin hovers near $100,000, according to market analyst Darkfost.
Short positions have outweighed long positions leading to significant selling pressure and slowing down Bitcoin's upward momentum.
Traders are increasingly skeptical about Bitcoin's ability to reach a new all-time high in the short term due to the imbalance between shorts and longs.
Historically, such imbalances could lead to short squeezes and if Bitcoin breaks key resistance levels, it may surprise bearish traders as seen in past bull cycles.