Bitcoin surges above $72,000, liquidating $3 billion in short positions and challenging bearish resistance since November.
Macro & Markets ·
Bitcoin surged to $72,408 on Thursday, marking its highest level since June, before settling near $71,423 as part of a rally that has gained roughly 15% since Monday. The sharp move triggered liquidations of more than $3 billion in short positions across crypto markets in the past 24 hours alone, forcing out over 190,000 traders in what one analytics firm called the largest upside shock since October 2023 relative to recent volatility.
The liquidations reflect a classic short squeeze—when forced buybacks of borrowed positions push prices higher, triggering additional liquidations in a self-reinforcing loop. The catalyst appears tied to macroeconomic signals: the U.S. Treasury announced Wednesday it would double its long-bond buyback operations starting September 9, a move that pulled bond yields down and weakened the dollar. That announcement coincided with a White House meeting between President Trump and crypto executives.
The rally now confronts a key technical hurdle. Bitcoin's death cross—formed when the 50-day moving average fell below the 200-day moving average on November 16—has held for nine months. As of Thursday afternoon, Bitcoin had not yet closed decisively above both lines, leaving the chart formation intact and its bearish signal potentially unbroken.