Last night, Bitcoin staged an exciting "bull-bear showdown," with the price briefly breaking through the $91,000 mark, and in the past hour, up to $146 million in short positions were forced to close. Who is really driving this sudden surge?
Currently, market sentiment seems to be dominated by a strong buying force. According to the data, Bitcoin's price rapidly surged in a short time, directly breaking through several resistance levels. In this market, short sellers who originally bet on a price correction didn't expect the market to give them a chance to breathe. When the price quickly rises, the stop-loss lines set for short positions at high levels are triggered one after another, creating a chain reaction like dominoes, further pushing up the price—this is a typical "short squeeze" process.
Speaking of which, this rise may not just be a technical breakout. Have you noticed the recent trend of large institutions increasing their holdings in Bitcoin spot ETFs? The movements of whale addresses also indicate that a large amount of capital is accumulating at low levels. These "smart money" seem to have sensed the change in market sentiment early on, while retail short sellers have become the "fuel" for this wave of market activity.
In fact, the $146 million in short liquidation is more like a result than a cause. The market never continues to rise simply because of liquidations; the real driving force lies in the influx of capital, market expectations, and the resonance of institutional layouts. Currently, the RSI indicator is close to neutral, and the price is still running above the middle band of the Bollinger Bands, with the momentum still seemingly leaning towards the bulls in the short term.
However, it must be said that the cryptocurrency market is always unpredictable. Whether this surge can be sustained may still depend on whether the subsequent buying can keep up.
