Bitcoin’s unstoppable rally has forced short traders into heavy losses as the cryptocurrency’s price surges toward $87,000. With bullish momentum dominating the market, liquidation losses have soared past $110 million, marking another major squeeze on bearish positions.
Bitcoin Breaks New Highs, Shorts Suffer
Over the past 24 hours, Bitcoin has gained significant traction, pushing through key resistance levels and triggering mass liquidations of short positions. Data from leading exchanges shows that leveraged traders betting against Bitcoin’s rise have been forced to close their positions, fueling even further price increases.
What’s Driving Bitcoin’s Price to $87,000?
Several fundamental and technical factors are contributing to Bitcoin’s latest breakout:
- Institutional Demand: Major financial institutions continue to accumulate Bitcoin, increasing scarcity and driving prices higher.
- Bitcoin ETF Inflows: Spot Bitcoin ETFs have seen massive inflows, indicating growing confidence among traditional investors.
- Pre-Halving Hype: The upcoming Bitcoin halving event is historically associated with significant price appreciation.
- Market Liquidity Shift: As short positions get liquidated, forced buy-backs push the price even higher, creating a cascading effect.
Short Sellers Face a Tough Market
The latest surge has left many short traders in a difficult position, with over $110 million in liquidation losses recorded across major exchanges. Those who anticipated a Bitcoin correction are now scrambling to manage their losses, while bulls continue to dominate the market.
What’s Next for Bitcoin?
With Bitcoin approaching the $87,000 milestone, analysts are eyeing the next potential resistance levels. If the momentum continues, BTC could push toward the psychological $90,000 mark. However, volatility remains high, and traders should proceed with caution.
About The Author
