Bitcoin short squeeze tops $230 million as $BTC reclaims $80,000
Short positioning in Bitcoin ran heavy heading into this week's Federal Reserve meeting, and the crowded side paid for it. More than $445 million in crypto short positions were forcibly liquidated in today's session…
Key takeaways
- A crypto short squeeze forcibly liquidated more than $445 million in short positions in today's session, with Bitcoin alone accounting for $230 million.
- Bitcoin reclaimed $80,000, trading up 5.88% at $80,846 after opening at $76,355 and hitting an intraday high of $80,857.
- The Federal Reserve raised interest rates 25 basis points on Wednesday, its first hike since 2023, and the dot plot projected a median policy rate of 4.1% through end of 2027, implying only one more move.
- Immediate resistance stands at $82,281, the level bulls need to close above to confirm the breakout, while support layers in at $75,569 and more firmly at $68,858.
- Technical indicators are bullish, with Bitcoin in a golden cross since last Saturday, an ADX of 40.6 confirming trend strength, and an RSI of 63.3 climbing toward overbought territory.
Short positioning in Bitcoin ran heavy heading into this week's Federal Reserve meeting, and the crowded side paid for it. More than $445 million in crypto short positions were forcibly liquidated in today's session, with $BTC alone accounting for $230 million of that figure. Bitcoin is up 5.88% at $80,846, having opened at $76,355 and tagged an intraday high of $80,857, with $82,281 the immediate resistance level now in view.
The backdrop: the Clarity Act's failure to clear a Senate procedural vote earlier this week pushed Bitcoin below $75,000 and appeared to trigger panic selling. Then Wednesday's Fed decision arrived. The Federal Reserve raised interest rates 25 basis points, its first hike since 2023, and the accompanying dot plot projected a median policy rate of 4.1% through end of 2027, implying only one more move rather than a sustained tightening cycle. The relief trade that followed has been compounding through the week into today's squeeze.
When leveraged short positions move far enough against a trader, collateral is automatically liquidated and the forced buying drives prices higher, pulling more positions into cascade liquidation. That is the structure of what played out across crypto today at scale.
The technical picture
Bitcoin entered a golden cross last Saturday, when the 50-day exponential moving average crossed above the 200-day EMA, and the gap between the two has widened daily since. The Average Directional Index (ADX) now reads 40.6, above the 25 threshold used to confirm a real trend is underway, with the positive directional line (DI+) above the negative (DI-). The RSI sits at 63.3, solidly bullish territory but climbing toward the 70 zone that flags overbought conditions.
The Squeeze Momentum Indicator has stayed active for 11 consecutive bars, with an 8.06% contraction reading. Some analysis has flagged the risk of what traders call a Bart Simpson pattern: a sharp green candlestick followed by a compression phase and then a red candlestick that cancels the move. Bitcoin remains down nearly 20% from its previous all-time high.
What to watch
Immediate resistance sits at $82,281, the top of the current Fibonacci leg and the level bulls need to close above to confirm the breakout. Support layers in at $75,569 (the 61.8% retracement) and more firmly at $68,858, the origin of the current leg. With ADX confirming trend strength, the setup favors continuation near term, but the pace of the move leaves little room for another 6% session without a cooling period. The tape now needs to answer $82,281.