Daily News 19

Tag: Crypto liquidations

  • Bitcoin Hits $85,000 as Short Squeeze Liquidates $648 Million in Bearish Bets

    Bitcoin Hits $85,000 as Short Squeeze Liquidates $648 Million in Bearish Bets

    Key Highlights

    • Bitcoin surged 5.4% to $84,984, breaking decisively above the September range high of $82,284 set on Sept. 4.
    • The rally was fueled primarily by a massive short squeeze, with $746 million in positions liquidated over 24 hours—$647.9 million of them shorts.
    • Open interest rose 7.59% to $156 billion and volume jumped 39% to $224 billion, indicating traders are re-establishing positions rather than exiting the market.

    Bitcoin Breaks September Resistance on Heavy Short Liquidations

    Bitcoin BTC extended its breakout above the top of its September trading range on Monday, changing hands at $84,984 during the late European morning session. The move represents a 5.4% gain over the prior 24 hours and leaves the asset well clear of the $82,284 high recorded on Sept. 4, which had previously capped upside attempts throughout the month.

    Forced Buying Drives Momentum Rather Than Fresh Conviction

    According to market analysts and data from Coinglass, the rally is being propelled predominantly by forced buying stemming from a cascading short squeeze rather than an influx of new long-side conviction. Over the past 24 hours, $746 million in total positions were liquidated, of which $647.9 million were short positions. In the most recent hour alone, an additional $159.9 million in positions were wiped out, with 95% of those liquidations on the short side.

    Bitcoin shorts accounted for $277.5 million of the 24-hour liquidation total, while Ether (ETH) shorts contributed $122.8 million. The disproportionate short-side washout underscores a market that was heavily positioned for downside or range-bound price action, leaving bears vulnerable to a sharp upside repricing.

    Open Interest and Volume Signal Position Replenishment

    Despite the massive short covering, open interest across the market has risen 7.59% to $156 billion, and 24-hour trading volume has surged 39% to $224 billion. This combination—rising open interest alongside heavy liquidations—suggests that traders are actively replacing the positions being closed out rather than stepping back from the market. The data points to a structural repositioning, with new participants or existing players re-entering on the long side as the breakout confirms.

    Why This Matters

    The break above the September range high marks a technically significant development for Bitcoin, which had been consolidating in a relatively tight band for weeks. The fact that the move was catalyzed by a short squeeze rather than organic spot buying introduces a degree of fragility: if the forced buying exhausts itself without follow-through from spot accumulators, a pullback toward the former resistance—now potential support—around $82,000 could materialize. However, the concurrent expansion in open interest and volume suggests the market is not merely covering shorts but rebuilding directional exposure. Traders will be watching closely for sustained spot bid interest, funding rate normalization, and whether the $85,000 level can flip to support in the coming sessions. The next key technical hurdle lies near the late-July highs around $87,500–$88,000.

    Frequently Asked Questions

    What triggered Bitcoin’s break above the September range?

    The breakout was driven primarily by a massive short squeeze, with $746 million in positions liquidated over 24 hours—$647.9 million of them shorts—forcing bearish traders to buy back positions and accelerating upside momentum.

    Does rising open interest during a short squeeze signal bullish continuation?

    Yes. The 7.59% increase in open interest to $156 billion, combined with a 39% volume surge to $224 billion, indicates traders are replacing liquidated shorts with new long positions rather than exiting the market, suggesting conviction behind the move.

    What are the key levels to watch after this breakout?

    Immediate support now sits at the former September high of $82,284. Upside targets include the late-July highs near $87,500–$88,000. Sustained spot buying and funding rate normalization will be critical for follow-through.

  • Bitcoin Surpasses $80,000 Amid Bullish Sentiment; Chinese Analyst Forecasts Next Moves

    Bitcoin Surpasses $80,000 Amid Bullish Sentiment; Chinese Analyst Forecasts Next Moves

    Key Highlights

    • Bitcoin surged past $80,000 to trade near $81,000, triggering over $457 million in short-position liquidations over 24 hours.
    • Prominent miner Jiang Zhuoer forecasts a potential test of the $83,000–$84,000 resistance zone before a sharp correction to $72,000–$74,000.
    • Short positions accounted for 89% of total liquidations in the past 24 hours, signaling a aggressive bearish squeeze.

    Bitcoin Breaks $80,000 Barrier as Short Squeeze Accelerates

    Bitcoin ($BTC) surged above the psychologically significant $80,000 level in recent trading hours, climbing rapidly from a consolidation range near $78,000 to reach approximately $81,000. The sharp upward move unleashed a wave of forced liquidations across cryptocurrency derivatives markets, with short positions bearing the brunt of the losses. According to on-chain and exchange data, the rally has wiped out hundreds of millions of dollars in bearish bets, underscoring the fragility of leveraged short exposure at current price levels.

    Jiang Zhuoer Projects Next Resistance at $83,000–$84,000

    Jiang Zhuoer, a well-known Chinese cryptocurrency miner and market analyst, noted in his latest analysis that Bitcoin has validated his earlier thesis by recovering without breaching the $75,000 support level. Zhuoer stated that the velocity of the current ascent increases the probability of Bitcoin testing the strong resistance zone between $83,000 and $84,000 in the next phase. However, he cautioned that such a move would likely set the stage for a subsequent sharp correction, as the liquidation of short positions at those elevated levels could exhaust buying momentum and trigger a reversal.

    Analyst Warns of Correction Toward $72,000–$74,000 After Resistance Test

    Zhuoer believes that once short positions are flushed out near the $83,000–$84,000 region, Bitcoin could retreat toward the $72,000–$74,000 range. This pullback, he argues, would then target long positions accumulated during the rally, creating a two-sided liquidation event that could reset market structure. The miner’s framework suggests a classic high-leverage washout pattern: an initial short squeeze to clear overhead supply, followed by a deep retracement to cleanse excessive long leverage before the next directional move.

    Liquidation Data Reveals Magnitude of Short Squeeze

    The scale of the short squeeze is evident in the liquidation metrics across major derivatives venues. In the most recent four-hour window, total liquidations reached $306.55 million, of which $286.14 million — approximately 93% — were short positions. Long liquidations during the same period amounted to just $20.41 million. Extending the horizon to 12 hours, total liquidations climbed to $411.62 million, with shorts accounting for $372.53 million versus $39.09 million for longs. Over the full 24-hour period, cumulative liquidations hit $515.05 million, with short positions representing $457.26 million (89%) and longs $57.79 million. The overwhelming skew toward short liquidations confirms that the rally was driven predominantly by forced covering rather than fresh spot demand.

    Why This Matters

    The current price action highlights the outsized influence of leveraged derivatives on Bitcoin’s short-term price discovery. With open interest remaining elevated across major exchanges, the market remains vulnerable to violent two-way moves as liquidation clusters act as magnetic price targets. Zhuoer’s projected $83,000–$84,000 resistance aligns with key technical levels, including prior local highs and dense liquidation clusters visible on exchange heatmaps. A successful breach could attract momentum-driven flows, but the subsequent correction risk to $72,000–$74,000 underscores the importance of risk management for leveraged traders. For longer-term holders, the sequence reinforces Bitcoin’s tendency to purge excess leverage before establishing sustainable trends.

    Frequently Asked Questions

    What triggered Bitcoin’s surge past $80,000?

    The rally appears to have been fueled by a short squeeze in the futures market, where rapidly rising prices forced bearish traders to buy back positions, amplifying upward momentum. Over $457 million in short positions were liquidated in 24 hours.

    What is Jiang Zhuoer’s price prediction for Bitcoin?

    Jiang Zhuoer expects Bitcoin to potentially test the $83,000–$84,000 resistance zone before correcting sharply to the $72,000–$74,000 range as long positions are subsequently liquidated.

    How significant were the recent liquidations?

    Extremely significant. In the last 24 hours, total liquidations reached $515.05 million, with short positions accounting for 89% ($457.26 million). The 4-hour window alone saw $286.14 million in short liquidations versus only $20.41 million in longs.

  • Crypto Longs Worth $570 Million Wiped Out as Clarity Act Fails

    Crypto Longs Worth $570 Million Wiped Out as Clarity Act Fails

    Crypto traders holding long, or bullish, futures positions suffered significant losses over the past 24 hours following the failure of the Clarity Act in a Senate procedural vote.

    Liquidation Data Reveals Heavy Long-Side Damage

    Exchanges liquidated approximately $571 million in long positions during this period, marking the highest total since August 22, according to data from CoinGlass. In contrast, short, or bearish, positions accounted for only about $100 million of the total wipeout.

    Bitcoin and Ether Lead Liquidation Tally

    Bitcoin and ether longs absorbed the heaviest damage, with roughly $190 million liquidated in each asset. XRP longs lost about $30 million, while Solana longs saw approximately $22 million in liquidations.

    Market Positioning Reflected Legislative Optimism

    The liquidation data indicates markets were positioned for continued upside, largely driven by hopes that the Clarity Act would advance. Analysts had previously flagged ether and DeFi tokens as the assets most likely to outperform bitcoin if the Senate voted in favor of the legislation.

    Trump Concession Reports Fueled Recent Rally

    Optimism strengthened earlier this week after reports that President Donald Trump was willing to make concessions on the bill’s ethics provisions. The market responded positively: bitcoin, the largest cryptocurrency by market value, rose to nearly $80,000 from about $77,000 on Monday.

  • Bitcoin Falls Below $77K as US-Iran Strikes Resume: Who Else Could Be Behind the Drop?

    Bitcoin Falls Below $77K as US-Iran Strikes Resume: Who Else Could Be Behind the Drop?

    Bitcoin fell sharply at the start of the new business week after briefly rising above $79,000 on Sunday evening. The cryptocurrency dropped below $77,000 within roughly an hour as renewed geopolitical tensions weighed on global financial markets.

    The sell-off followed fresh fighting between the United States and Iran after nearly a month of relative calm, during which the US reportedly focused on increasing economic pressure. US forces struck two Iranian launchers on Larak Island on Sunday, while Iran retaliated with attacks on military targets in Jordan.

    US President Trump’s AI video depicting Iran’s key oil region, Kharg Island, as being “blown to smithereens” also did little to ease tensions.

    Oil Prices Rise as Asian Markets Fall

    Brent crude rose nearly 3% to above $90 per barrel, reviving concerns about another energy-driven inflation shock. The increase comes shortly after Fed Chair Kevin Warsh delivered a hawkish speech at Jackson Hole on Friday, making higher oil prices particularly concerning for the inflation outlook.

    Asian stock markets moved lower after news of the attacks emerged. Japan’s Nikkei fell by about 2%, while South Korea’s Kospi and Chinese equities also declined. US and European stock futures followed the broader risk-off trend, and the Japanese yen weakened beyond 160 against the US dollar.

    Bitcoin lost more than $2,000, falling below $77,000. Additional selling pressure came from Wintermute after on-chain data showed that the entity had transferred 5,100 $BTC, worth nearly $400 million, to Binance over the previous two days. The transfer may indicate an intention to sell.

    Although the transaction does not confirm that Wintermute sold its holdings, similar activity by the market maker last week preceded another decline in $BTC and altcoins.

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    • Bitcoin Suddenly Dumped by $3K as Liquidations Hit $200M Hourly: Is the Fed to Blame?

    Ethereum performed even worse, dropping from above $2,500 to below $2,400 within an hour. Lookonchain reported that a whale or institution had deposited nearly 41,000 $ETH, worth more than $100 million, onto exchanges. Such transfers are typically made ahead of a potential sale.

    Crypto Liquidations Surge

    The sharp market decline resulted in more than $400 million in liquidated positions over a 24-hour period, with most of the losses occurring earlier in the morning. According to CoinGlass, $ETH long positions accounted for nearly $100 million of the liquidations, while $BTC longs represented $62.60 million.

    The largest individual liquidation involved Ethereum, with a trader losing $6.12 million on Aster. More than 100,000 overleveraged traders were liquidated during the past day.

    Liquidation Data on CoinGlass