Bitcoin Faces Long Squeeze Risk as Momentum Fades and FEI Score Enters 'Absolute Noise' Zone
Key Takeaways
- •A new analysis by Guga, publicized through CryptoQuant's official X account on September 10, 2026, suggests Bitcoin's recent rally may be losing strength as momentum indicators weaken.
- •Price Momentum has been exhausted at level 20, indicating slowing bullish momentum even as Bitcoin holds near recent highs.
- •The FEI Score has reached 99.53%, placing it in what analysts call a zone of 'absolute noise' where market signals become less reliable.
- •The current setup of substantial bullish leverage could precede a long squeeze, in which falling prices force leveraged long traders to close positions and accelerate downside volatility.
- •Market participants are tracking derivatives positioning, funding rates, on-chain activity, and potential fresh spot buying to judge whether Bitcoin can stabilize or face a sharper pullback.
New market analysis suggests that Bitcoin's recent rally may be losing strength as key momentum indicators begin to weaken, raising concerns that current conditions could set the stage for a long squeeze.
According to the analysis, Price Momentum has already been exhausted at level 20, indicating that bullish momentum is slowing even as Bitcoin holds near recent highs. At the same time, the FEI Score has reached 99.53%, placing it in what analysts describe as a zone of “absolute noise,” where market signals become less reliable. The combination points to growing uncertainty in the current market structure.
Long Squeeze Risk Increases
Analysts believe the present setup could precede a long squeeze — a scenario in which falling prices force leveraged long traders to close their positions, accelerating downside volatility. Such episodes tend to unfold when substantial leverage has built up on the bullish side of the market, allowing liquidations to cascade once prices begin to decline.
“With Price Momentum already exhausted at level 20 and the FEI Score locked in a zone of absolute noise (99.53%), the stage is set for a Long Squeeze,” the analysis noted.
The findings come from a piece titled “Bitcoin: The Illusion of Greed and Exit Liquidity,” credited to analyst Guga (@GugaOnChain) and publicized via CryptoQuant's official X account on September 10, 2026:
Bitcoin: The Illusion of Greed and Exit Liquidity
“With Price Momentum already exhausted at level 20 and the FEI Score locked in a zone of absolute noise (99.53%), the stage is set for a Long Squeeze.” – By @GugaOnChain Read more
— CryptoQuant.com (@cryptoquant_com) September 10, 2026
While the signals do not guarantee a correction, elevated leverage and weakening momentum could leave the market vulnerable if buying demand begins to fade.
Traders Watch Key Support Levels
The latest Bitcoin long squeeze outlook highlights the importance of monitoring leverage, momentum, and spot demand. Investors will continue tracking derivatives positioning, funding rates, and on-chain activity to determine whether Bitcoin can stabilize or whether a wave of long liquidations could trigger a sharper pullback.
Market participants are also watching whether fresh spot buying emerges to offset any increase in selling pressure.
Source: CoinoMedia
