Bitcoin Surges Past $65K After Massive Short Squeeze Fuels Rally

Bitcoin exceeded the $65,000 mark, driven by heavy short liquidations. As traders anticipated a retracement, they were caught in a short squeeze, pushing BTC higher. Despite bullish sentiment, caution is advised due to market volatility.

Bitcoin (BTC) experienced a significant price surge, comfortably surpassing the $65,000 mark during today’s trading session. However, this upward movement came at the expense of heavy losses for traders who anticipated a retracement around $64,000, leading to a massive short squeeze.

Many traders believed Bitcoin, which has been rallying steadily since the second week of September, would soon face profit-taking near $65,000. As a result, they opened short positions, expecting a downturn. However, the market moved against them, triggering a chain reaction of liquidations.

Data from Hyblock Capital revealed multiple spikes in short positions over the past three days. This was likely driven by a temporary slowdown in Bitcoin’s upward momentum between September 20th and September 23rd. Bears anticipated this as a sign of potential retracement, leading to a large increase in short positions, particularly on Binance.

Short liquidations surged dramatically, with CryptoQuant reporting a 591% increase in liquidations within the last 24 hours. Around 635 shorts were liquidated during this period, compared to a massive 12,118 liquidations on September 20th. These liquidation spikes highlighted Bitcoin’s heavy exposure to leverage, making it highly sensitive to sudden market movements.

Although the current market sentiment remains bullish, with many long-term holders continuing to HODL, Bitcoin’s price is still vulnerable to volatility. As the U.S. election period draws nearer, traders are advised to proceed cautiously, as the political climate may introduce additional uncertainty to the cryptocurrency market.

Bitcoin’s ability to maintain its current price level will likely depend on how market participants react to upcoming events and whether long-term holders continue to resist selling pressure.

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