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Bitcoin has been on an incredible price momentum for the past two weeks. This momentum, which took many by surprise, saw Bitcoin breaking above the psychological $65,000 price level again. According to price data, Bitcoin traded as low as $52,820 on September 6. Related Reading: Bitcoin Breaks $65K With $365 Million In Spot ETF Inflows Fueling The Rally Its recent rebound to $66,300 indicates that the king of cryptocurrencies has recovered substantially by 25.5% in two weeks. According to Coinglass data, this marks the biggest gains recorded by Bitcoin in September since 2013. Yet, despite this impressive rally, a significant number of traders continue to bet against BTC. This ongoing trend has set the stage for a potential short squeeze, which could send the coin’s price soaring to new all-time highs in October. Here’s a closer look at how this is happening and what could unfold next. Short Positions Dominate Exchange According to crypto analyst Ali Martinez, who shared his insights on social media platform X, a surprising 57.77% of Binance users with open positions are shorting Bitcoin. This means that many traders are betting on the price of Bitcoin to decline, even as it maintains a strong upward momentum. 57.77% of @binance users with open positions are shorting #Bitcoin! pic.twitter.com/bWQ4d5n6MJ — Ali (@ali_charts) September 27, 2024 However, considering the institutional and whale inflow into Bitcoin, especially through Spot Bitcoin ETFs, Bitcoin is still largely in the position to keep trending upwards in the coming week. The combination of such inflows and the significant volume of short positions creates the potential for a short squeeze as we move into October. As September comes to an end, many traders are keeping an eye on October, which is historically a bullish month for BTC (Uptober). Bitcoin has often performed well in the fourth quarter, which is when the industry typically sees increased buying pressure and institutional inflows. Such a short squeeze could further push the crypto’s price beyond its previous all-time high of $73,737 and into new price territories. Bitcoin: Short-Term Correction On The Horizon? While the outlook for BTC is generally bullish, there is also the possibility of a short-term correction in the price over the coming days. The TD Sequential indicator, a popular tool used by traders to identify potential price reversals, has flashed a sell signal on the 4-hour chart. This phenomenon was noted by Ali Martinez, suggesting that Bitcoin could experience a brief pullback before resuming its upward trajectory. Related Reading: Stacks: New Network Upgrades Push STX Price Up By 18% – Details Such a correction would serve as a consolidation phase after two weeks of bullish price action, giving the market time to reset before the next big move. Following this trend, it could also potentially trigger more traders to go short, further fueling the potential for a bigger short squeeze when BTC rebounds.  At the time of writing, Bitcoin is trading at $65,658.  Featured image from CNBC, chart from TradingView