Bitcoin is a representative virtual currency ($BTC) is trading around $74,600 after a strong week.
Analysts say rallies are stalling ahead of a two-week ceasefire agreement between the United States and Iran that expires next week.
However, one analyst predicts that Bitcoin could rise to $125,000 in the coming months.
ZeroStack CEO Daniel Reis Faria said in an interview with CoinDesk that Bitcoin’s perpetual interest rate is extremely negative and could cause a significant price increase.
The analyst noted that Bitcoin’s perpetual term funding rate is significantly negative, and said, “This indicates that investors are heavily shorting in anticipation of a decline.”
According to the analyst, this increases the likelihood of a sharp short squeeze, which could push Bitcoin towards $125,000 in the coming months.
For now, Faria believes Bitcoin could reach $125,000 within the next month or two. Faria bases this forecast on the following funding rates: $BTC Perpetual futures fell to their lowest level since 2023.
According to the analyst, if the price of Bitcoin continues to rise, it could lead to a mass liquidation of short positions, causing pressure on short positions and accelerating the price rise.
*This is not investment advice.
