Bitcoin eyes short squeeze as Coinglass data shows rising long liquidations and traders await key US CPI report this Friday.
Bitcoin (BTC) is showing signs of a potential short squeeze as traders await the upcoming U.S. Consumer Price Index (CPI) release.
Data from multiple market sources points to liquidity building above the current price range, suggesting that BTC may attempt an upward move. Investors are also preparing for Friday’s CPI report, which could shape expectations for Federal Reserve rate decisions later this month.
Bitcoin Liquidity Points to Potential Upward Move
Data from Coinglass indicates that liquidity is now concentrated above Bitcoin’s current trading levels.
Analysts note that when liquidity builds on the upside, it often draws the market in that direction. This pattern suggests that short positions could be at risk of being squeezed as the market moves to capture that liquidity.
Experts believe the next move for BTC could be higher, supported by growing interest from traders expecting renewed momentum.
Some analysts also suggest that capital may rotate from gold to Bitcoin after the strong rally in the precious metal earlier this month. The BTC-to-gold ratio is currently showing signs that the market may have reached a short-term bottom.
Institutional Interest Strengthens With Rising Coinbase Premium
Crypto analyst Ted Pillows reported that the Coinbase Bitcoin premium has risen, signaling increased demand from U.S.-based investors.
The premium measures the price gap between Coinbase and other global exchanges. A higher premium usually indicates strong buying pressure from institutional or retail participants in the U.S. market.
Coinbase Bitcoin premium is steadily rising along with BTC price.
This is a good sign, and I want to see this continue going into next week.
If that happens, $BTC could start a big rally. pic.twitter.com/axC3dsNDL9
— Ted (@TedPillows) October 19, 2025
Pillows noted, “If the premium continues to rise into next week, it could set the stage for a major Bitcoin rally.”
Market observers view the trend as an indicator of growing confidence among U.S. investors. If demand continues at this pace, it could add more strength to Bitcoin’s price performance in the coming days.
CPI Report and Fed Decision in Focus
The U.S. CPI report for September is expected to be released on Friday despite the ongoing government shutdown. The Labor Department confirmed that the data will be published as scheduled, while other reports will remain delayed until the shutdown ends.
The CPI release will come just ahead of the Federal Reserve’s policy meeting on October 29. Traders are speculating that the CPI data could support a 25-basis-point rate cut if inflation continues to ease. At the same time, MicroStrategy founder Michael Saylor has hinted at a possible new Bitcoin purchase.
The most important orange dot is always the next. pic.twitter.com/N5GQOdqr6y
— Michael Saylor (@saylor) October 19, 2025
The company currently holds about 820,000 BTC valued at nearly $69 billion, and a new acquisition could take place as early as Monday, October 20.
The post BTC News Today: Bitcoin Short Squeeze Likely Amid Hopes of Bullish US CPI Report appeared first on Live Bitcoin News.