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▲ Bitcoin (BTC)
Bitcoin (BTC) surpassed $85,000, setting a new 8-month high. A powerful bullish rally driven by a short squeeze unfolded as a large number of short (sell) positions, which had bet on a price decline, were forcibly liquidated.
According to BeInCrypto on September 21 (local time), Bitcoin surpassed the $85,000 mark during intraday trading, entering that price range for the first time since January 31. Data compiled by crypto derivatives platform CoinGlass showed that positions worth $271.83 million were forcibly liquidated across the entire crypto market in just one hour. Among these, long (buy) position liquidations amounted to only $9.53 million, confirming that the majority of the liquidated volume was concentrated in short positions.
In Bitcoin alone, short positions worth $218.55 million evaporated in one hour. Ethereum (ETH) followed with $26.47 million in liquidations, and Solana (SOL) with $8.92 million. The liquidation volume snowballed over time, reaching $433.67 million over 12 hours and $599.15 million over 24 hours. A total of 127,304 traders incurred losses due to this liquidation event. The largest single order liquidation was $11.29 million, occurring in Binance's Bitcoin perpetual futures contract.
Bitcoin's surge quickly spread across the altcoin market. XRP rose by 7.04% in 24 hours, and Solana increased by 6.67%. Zcash (ZEC) surged by 33.50% weekly, recording the highest weekly gain among the top 10 assets.
The stabilization of long-term technical indicators on the charts also supported the upward rally. Bitcoin closed its weekly candle above the 50-week moving average for the first time in 45 weeks. It ended the week of September 20 at $81,159, approximately 3% higher than the 50-week moving average of $78,786. Alex Thorn, Head of Research at Galaxy, analyzed this weekly close as a significant signal that the bear market low has been fully confirmed.
With the forced liquidation of short positions coinciding with the breach of the 50-week moving average, Bitcoin recovered $84,000 in 8 months. Market attention is focused on whether Bitcoin, leveraging the liquidation of over 120,000 short positions, can embark on a full-fledged upward trajectory to reclaim its previous all-time high.
[Article Summary]
-Bitcoin (BTC) surpassed $85,000 for the first time since January, reaching an 8-month high.
-Positions worth $271.83 million were liquidated in 1 hour, and the 24-hour liquidation volume reached $599.15 million (affecting 127,304 people).
-With the 50-week moving average reclaimed for the first time in 45 weeks, confirming a bear market bottom signal, XRP and Solana (SOL) also surged.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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