Bitcoin Price Prediction for Dec 31: Short Traders Are Getting Crushed—But Can BTC Hold the Line?

Short positions are bleeding as Bitcoin tests critical support. The bears are on the ropes, but the battle for the $70,000 zone isn't over.

The Squeeze Is On

Liquidations are piling up on leveraged short bets. Market sentiment flipped from greed to fear in a matter of days, catching overconfident traders flat-footed. It's a classic crypto move—just when the herd gets comfortable, the ground shifts.

Support or Breakdown?

All eyes are on the key technical level. A clean bounce here could trigger a relief rally and trap more bears. A breakdown, however, opens the door to a deeper correction. The on-chain data shows large holders are accumulating, not dumping—a bullish divergence from the spot price action.

The Macro Muddle

Traditional finance is watching, too. Rate cut hopes are fading, and the usual safe-haven plays are getting crowded. Bitcoin's correlation to tech stocks is tightening again, for better or worse. Some Wall Street analysts are suddenly 'discovering' volatility—as if predictable 5% daily swings were ever part of the deal.

Dec 31st Crossroads

The year-end close will set the narrative for Q1. A hold above support paints a picture of strength consolidation. A fail below it resets the timeline for the next leg up. The smart money is positioning for both outcomes, because in crypto, the only certainty is that someone's always wrong—and paying for lunch.

Will Bitcoin defend the line and send the shorts running for cover, or is this the pause before a deeper flush? The next 48 hours will tell. Just remember: in a market fueled by leverage and narrative, the most expensive trade is often conviction without a stop-loss.

Bitcoin faces challenges as short traders take a hit, but its ability to hold key support will determine if BTC can gain momentum. Bitcoin (BTC) faced significant challenges in December, on track to end the year without the widely expected year-end rally.

Visit Website