Bitcoin jolted markets today with a volatile one‑hour move that underscored how quickly sentiment can flip in crypto. BTC spiked roughly $3,000 to briefly reclaim $90,000, only to slide back toward the mid‑$80,000s as a wave of leveraged liquidations rippled through derivatives markets. What happened - According to the Kobeissi Letter, the initial rally triggered about $120 million in levered short liquidations. Minutes later, roughly $200 million in levered long positions were wiped out, pushing Bitcoin back to roughly $86,000. Kobeissi described the episode as a “$140 BILLION swing in market cap in under 2 hours,” adding bluntly: “Leverage is out of control.” - The speed and size of those liquidations highlight the risks of high leverage around major price levels, where tight stops and crowded positions can amplify moves in both directions. A technical bullish case: the fifth “golden cross” - Amid the turbulence, trader Merlijn (on X) flagged a fresh technical signal: Bitcoin has just printed its fifth golden cross. The golden cross—classically the 50‑day moving average crossing above the 200‑day—has historically preceded large rallies for BTC in past cycles. - Crypto commentator CryptosRUs noted the prior golden crosses were followed by substantial gains of 87%, 47%, 78% and 33% respectively, arguing that these crossovers often occur early in cycles when market sentiment remains skeptical. What it means - A golden cross is a bullish technical indicator, and its appearance adds a narrative that a sustained uptrend could be forming. But it’s not a guarantee—short‑term price action can still be dominated by leverage-driven squeezes and macro news. - Traders and investors should weigh the signal alongside on‑chain data, derivatives positioning, and broader macro factors. The recent $140 billion market cap swing is a reminder that even when charts look favorable, rapid reversals remain possible in a highly leveraged market. Bottom line Bitcoin’s intraday pump-and-dump showcased both the upside momentum and the fragility that leverage can introduce. The newly printed golden cross offers a bullish backdrop, but market participants remain wary: technicals may point higher, yet volatile liquidations can erase gains just as fast. Read more AI-generated news on: undefined/news

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