Bitcoin Traders Eye Post-Election Rally as Exchange Outflows Signal Supply Squeeze

Bitcoin traders are positioning for a potential rally following the U.S. midterm elections, with key on-chain metrics pointing to a tightening supply. Exchange outflows have accelerated, indicating that investors are moving coins to cold storage, reducing the liquid supply available for sale. According to data cited in the report, short positions remain elevated, which could fuel a short squeeze if prices break above key resistance levels. Bulls are closely watching the $20,000 to $21,000 range as a critical battleground. A decisive move above this zone could trigger a cascade of liquidations and propel Bitcoin toward $25,000. The post-election period historically brings increased market volatility, and with macroeconomic uncertainty persisting, traders are hedging their bets. The combination of shrinking exchange reserves and bearish positioning suggests that any positive catalyst could spark a sharp upward move. As the dust settles from the midterms, Bitcoin's next direction may hinge on broader risk sentiment and regulatory signals from Washington. For now, the supply squeeze narrative is gaining traction among market participants.