By cryptoadmin The leading cryptocurrency, Bitcoin ($BTC), is trading around $74,600 after a strong week.
Analysts say the rally has stalled ahead of the expiration of the two-week ceasefire agreement between the US and Iran next week.
However, one analyst predicts that Bitcoin could rise to $125,000 in the coming months.
Speaking to Coindesk, ZeroStack CEO Daniel Reis-Faria stated that perpetual interest rates on Bitcoin are extremely negative, which could trigger a significant price increase.
Noting that Bitcoin’s perpetual term funding rates are quite negative, the analyst said, “this indicates that investors are heavily shorting, expecting a decline.”
According to the analyst, this increases the likelihood of a sharp short squeeze that could push the Bitcoin price towards $125,000 in the coming months.
At this point, Faria believes Bitcoin could reach $125,000 within the next one to two months. Faria bases this prediction on the funding rate of $BTC perpetual futures, which has fallen to its lowest level since 2023.
According to the analyst, if the Bitcoin price continues to rise, this could lead to a mass forced liquidation of short positions, causing a short position squeeze that would accelerate the price rally.
*This is not investment advice.