The increase from Bitcoin to $ 104,000 liquidates almost $ 400 million on short bets

• Bitcoin rose by over 3% in 24 hours and exceeded $ 104,000 (the highest stand since January 31).
• Almost $ 400 million in Bearish BTC short positions were liquidated in 24 hours (the highest level since November).
• The significant short squeeze indicates further upward potential because the sales pressure subsides.

Bitcoin has experienced a strong increase in the last 24 hours, broke crucially over important psychological levels and surprised many Bearish traders, which led to significant liquidations of short positions.

The increase was underpinned by positive macroeconomic news and the persistently strong institutional interest in the leading cryptocurrency.

The price of Bitcoin (BTC) rose by over 3%within a 24-hour period, acting at around $ 102,500 and temporarily exceeded the $ 104,000 mark-the highest level since January 31.

This bullish dynamic was not limited to Bitcoin; The wider cryptocurrency market also increased.

The entire market capitalization of all cryptocurrencies, without Bitcoin, rose by impressive 10% to $ 1.14 trillion, a maximum of the data from Tradingview.

Two central catalysts seem to have triggered this strong increase.

First, President Donald Trump announced that a comprehensive trade agreement was achieved with the United Kingdom, a development that generally strengthens the risk to risk in global markets.

Secondly, the cumulative tributaries reported in Bitcoin Exchange-Traded Funds (ETFs) listed on US stock exchanges that they have exceeded a new record of over 40 billion $, which indicates a continued and growing institutional demand for direct Bitcoin exposure.

bear bets in short-squeeze decimated

This fast and strong price increase triggered a significant "short-squeeze", in which traders who had rely on a falling Bitcoin price were forced to close their positions with loss because the market was moving against them.

According to the data from Coinglass, almost $ 400 million in Bearishes BTC short positions have been liquidated in the last 24 hours.

This represents the highest daily total number of short liquidations since at least November.

A position is liquidated or forced by a stock exchange if unfavorable price movements lead to the fact that the contestation of a lit trader falls under the required margin level to prevent further losses.

In contrast, relatively modest $ 22 million in bullish long positions were liquidated during the same period.

implications of imbalance: more upward potential in sight?

The considerable imbalance between short and long liquidations provides an insightful insight into the current market positioning.

It indicates that the lever was heavily weighted on the bear's side, which means that many traders had been waiting for a decline in price or positioned themselves accordingly.

The quick resolution of these short positions, since traders were forced to buy Bitcoin to cover their losses, probably reinforced the upward movement of the price.

market analysis often explains such significant liquidations of short positions as a potential bullish signal for the nearby future.

It indicates that a considerable part of the sales pressure was removed from the market, which may make the way for further price profits, while the prevailing mood changes and buyers gain more control.

The combination of positive external catalysts and the internal market dynamics of a short squeez could lay the basis for a continuing upward dynamics for Bitcoin and the wider cryptoma market.