Bitcoin (BTC) price breaks above key psychological levels, triggering a massive short squeeze

Bitcoin experienced a powerful upward surge in the last 24 hours, decisively breaking above key psychological levels and catching many bearish traders off guard, leading to substantial liquidations of short positions.

Bitcoin experienced a powerful upward surge in the last 24 hours, decisively breaking above key psychological levels and catching many bearish traders off guard.

This move has led to substantial liquidations of short positions and set the stage for potential near-term gains.

Bitcoin price today: BTC breaks above $104K, short positions liquidated in numbers not seen since November

The price of Bitcoin (BTC) rose over 3% in the 24 hours to 3:30 AM ET (7:30 GMT), trading around the $102,500 mark.

At one point, the cryptocurrency climbed to as high as $104,000, a peak last seen on January 31.

This rally was part of a broader crypto market upswing, with the total market capitalization of all cryptocurrencies other than Bitcoin surging 10% to reach $1.14 trillion, a level last seen on March 6, according to TradingView.

Two key factors appear to have contributed to this sharp price increase.

Firstly, President Donald Trump announced that a comprehensive trade deal had been reached with the United Kingdom, a development that generally tends to boost risk appetite in global markets.

Secondly, cumulative inflows into US-listed spot Bitcoin exchange-traded funds (ETFs) reportedly hit a new record high, surpassing $40 billion, indicating sustained and growing institutional demand for direct exposure to the leading cryptocurrency.

This rapid and strong price appreciation triggered a significant "short squeeze," where traders who had bet on Bitcoin's price falling were forced to close their positions at a loss as the market moved against them.

According to data from Coinglass, nearly $400 million worth of bearish BTC short positions were liquidated over the past 24 hours.

This represents the highest single-day total for short liquidations since at least November.

A position is liquidated, or forcibly closed by an exchange, when adverse price movements cause a leveraged trader's account balance to fall below the required margin level, preventing further losses.

In contrast, a relatively modest $22 million in bullish long positions were wiped out during the same period.

The substantial imbalance between short and long liquidations provides a telling insight into recent market positioning.

It indicates that leverage was heavily skewed towards the bearish side, meaning many traders were anticipating or positioned for a price decline.

The rapid unwinding of these short positions, as traders were forced to buy Bitcoin to cover their losses, likely exacerbated the upward price movement.

Market analysts often view such a significant liquidation of shorts as a potentially bullish signal for the near term.

It suggests that a considerable amount of selling pressure has been removed from the market, potentially clearing the path for further price gains as the prevailing sentiment shifts and buyers gain more control.

The combination of positive external catalysts and the internal market dynamics of a short squeeze could set the stage for continued upward momentum for Bitcoin and the broader crypto market.

The post Bitcoin price today: BTC breaks above $104K as record ETF inflows spark massive short squeeze appeared first on Chain Teller.

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