Bitcoin surges, $600 million liquidated... Next move after the short squeeze

Source: BlockMedia Original Title: “Shorts wiped out” Bitcoin surges, $600 million liquidated… not much left to the peak Original Link: Bitcoin has surged sharply in a short period, effectively neutralizing bearish bets in the derivatives market. As short positions that failed to anticipate the price rebound were liquidated in succession, over $600 million disappeared from the market in just one day. After a round of short squeeze, market attention is now shifting to ‘how much more is left.’

According to CoinGlass, the total liquidation volume in the cryptocurrency market over the past 24 hours was $672.17 million. Among these, short position liquidations amounted to $587.33 million, overwhelming bullish bets. Positions betting on short-term declines were systematically closed during the surge, leading to a rapid increase in volatility.

Focus on Short Squeeze Mainly in Bitcoin and Ethereum

Bitcoin rose 5.27% during this period, reaching around $95,900. The liquidation amount for Bitcoin alone was $291.86 million, the largest in the entire market. Of this, short position liquidations accounted for $269.60 million, indicating that bearish bets were heavily disrupted during the surge.

Ethereum also showed a strong upward trend. It increased 8.01% over 24 hours, climbing into the mid-$3,300 range, with related liquidations totaling $204.4 million. Among these, short position liquidations accounted for $186.42 million. The largest single liquidation order occurred on a major exchange’s ETHUSDT trading pair, amounting to $12.9 million.

Altcoins also generally showed strength. During a 6.01% rise, Solana experienced $32.42 million in liquidations, and major tokens like XRP and Dogecoin saw short liquidations significantly surpassing long liquidations. Dogecoin recorded over 10% gains, with both short covering and short-term chasing buys flowing in simultaneously.

Top liquidity still present… Derivatives market watches ‘next target’

Looking at the Bitcoin futures liquidation heatmap, the nature of this surge becomes clearer. As the price quickly moved from the $93,000s to the $96,000s, most of the liquidity in the upper range of short positions was absorbed. The high-leverage positions accumulated on the assumption of a decline were forcibly closed, which actually strengthened the upward momentum.

However, the upper liquidity has not been completely exhausted. According to the heatmap, there are still significant liquidation clusters between $97,000 and $98,000. If the price approaches this zone, additional short covering could occur, keeping the short-term upside potential in the derivatives market.

If this zone is broken through with volume, the next key levels are around $99,000 to early $100,000. These levels are psychologically significant resistance points with relatively thick liquidity. However, since a large-scale short squeeze has already occurred once, there is a variable risk that profit-taking pressure could increase as prices move higher.

Market participants interpret this surge not merely as a price rebound but as a signal of structural repositioning. After a large-scale liquidation of bearish bets, the derivatives market is now more focused on ‘how far can it go’ rather than ‘how much more.’