Bitcoin Breaks Out Above the Cloud, Liquidates $500M in Shorts

Bitcoin has surged to $94,000, pushing above the daily TBO Cloud and triggering over $500 million in short liquidations in the last 24 hours.

Bitcoin price rose above the daily TBO Cloud on Wednesday, liquidating over $500 million in shorts in the last 24 hours. This move is comparable to the liquidation levels seen during the March 2nd Trump-fueled weekend pump.

Bitcoin is now in the process of printing a TBO Open Long on the daily chart—a signal which has not been seen since September 2024. In past instances, this print was followed by a period of price grinding and then a pullback. Similar patterns in July and May 2024 showcase this same unfolding.

While this current Open Long is a massively bullish confirmation, it’s also critical to note that daily RSI is now overbought at 82.07. To sustain bullish momentum, BTC needs to close above the critical $95,000 level. This level holds a triple Fibonacci significance—combining the 0.618 retracement from 2025 and the 1.618 extension from 2024. There’s also an upper wick from the March 2nd rally at precisely $95,000. If BTC manages to close above that tier, a swift ascent to $100K may follow. But before another attempt at higher highs, a short-term pullback to $90,000 seems more likely.

Macro sentiment shifts as S&P closes with bullish candle and gold drops 5%

In broader market moves, S&P Futures closed up 2% with a bullish engulfing candle. This comes as good news for the bulls, especially after yesterday’s close in lower territory. S&P is now testing the 52-Week High, which could unlock another leg higher. At the same time, Gold dropped 5% from its session high, putting pressure on the lower band of the TBO Cloud.

This shift in market behavior comes after Trump provided a brief update on his meeting with Biden. Despite rumors of Jerome Powell’s impending removal, Trump stated he wouldn’t do so but expressed his desire for interest rates to be cut. Additionally, successful tariff negotiations with India contributed to the broader risk-on rally.

Gold’s move signals that fear is diminishing across global markets. As panic subsides, capital usually flows into a primary risk asset—in this case, Bitcoin. To confirm this shift, the PAXG/BTC ratio just printed a TBO Close Long, a historical indicator of BTC outperforming gold afterward.

Complementary to that, BTC/Gold also confirmed a TBO Close Short, further reinforcing the bullish bias on the Bitcoin chart.

Stablecoin dominance breaks down as capital rotates into crypto

Stablecoin dominance saw a TBO Cross Down yesterday as it fell nearly 6%, with daily RSI dropping below 25. While a short-term bounce is possible from here, the chart is now clearly in bearish consolidation—which is a bullish signal for crypto. This setup is nearly identical to September 2024. Back then, we saw a similar drawn-out decline in stablecoin dominance and a major rally in crypto.

Meanwhile, BTC.D had a third consecutive TBO Breakout on yesterday’s candle. Weekly RSI also closed above a key resistance line, currently standing at 82.49. If BTC.