Bitcoin News Today: Bitcoin Eyes $89K Short Squeeze as S&P 500 Sits Just 2% Below All-Time High

Bitcoin held steady near the $87,000 mark during Wednesday’s Wall Street open as analysts warned that a major short squeeze toward $89,000 may be imminent.Despite muted intraday volatility, market positioning shows a buildup of liquidity above spot price — a setup that could force shorts to capitulate if BTC makes a decisive move upward.Liquidity Maps Signal BTC May Be “Pulled Up” Toward $89KData from Cointelegraph Markets Pro and TradingView showed Bitcoin stuck in a narrow range, giving traders time to position aggressively in both directions.With liquidity clusters forming above, analysts expect the market to gravitate toward these liquidation targets.CoinGlass heatmaps highlight the largest pools of liquidations at:$84,500 — downside draw$88,500 — upside drawBTC moving into either zone could trigger cascading liquidations.$89K: The Short Squeeze Line in the SandCrypto investor Ted Pillows called $89,000 the “key reclaim level” that would put shorts under heavy pressure:“If BTC reclaims $89,000, upside liquidity will be swept first.If Bitcoin loses $85,000, the downside liquidity will be taken out before a bounce.”Meanwhile, analyst Lennaert Snyder noted that long/short positioning sat at a nearly perfect split:Long/short ratio: ~50/50$89K remains the near-term resistance wallSnyder expects Bitcoin to flush out stop losses before choosing direction:“Either we gain $89K, or sweep the $80.6K lows and bounce back.”Macro: Bitcoin Flat While the S&P 500 Pushes Toward New HighsU.S. jobless claims came in lower than expected, hinting at improving labor conditions. But unlike stocks, crypto markets barely reacted.The S&P 500 climbed after the opening bell and is now only 2% below its all-time high, according to The Kobeissi Letter:The macro backdrop remains supportive for Bitcoin:Fed Rate Cut Odds SurgeCME’s FedWatch Tool shows:83% probability of a 0.25% rate cut on Dec. 10That’s a dramatic shift from just 30% a week earlier, driven by dovish commentary from key Federal Reserve officials.Rate-cut optimism typically benefits risk assets such as Bitcoin — yet BTC has so far remained directionless as liquidity builds around key resistance.BTC Must Break $89K, or Drop to $80.6K FirstWith long and short traders balanced and liquidity pools tightening, analysts agree Bitcoin is heading toward a decisive move.Bullish trigger:- Reclaiming $89,000 → short squeeze toward $90,000+Bearish trigger:- Losing $85,000 → sweep of $84.5K → potential wick to $80.6K before a reboundFor now, BTC remains range-bound — but not for long. Liquidity pressure suggests a volatility spike is coming, with $89K the level that could unleash the next leg of the move.