Crypto Shorts Wiped Out | Over $120M Liquidated in 24 Hours

A massive short squeeze has sent shockwaves through the crypto market, with Bitcoin hitting a record high of $119,370. In just one day, more than $123 million in short liquidations occurred across multiple exchanges, devastating bearish positions.

Market Turmoil: Liquidation Breakdown

• Binance took the brunt of the liquidations, with $43 million wiped out.

• Bybit followed closely behind, incurring losses of $37 million.

• Bitcoin’s liquidation accounted for $34 million, while Ethereum added $22 million to the tally.

Analysts suggest that forced buying accelerated the price hike, indicating a potentially bullish trend ahead. Niels, a noticed analyst, points out that if Bitcoin breaks above the $120k resistance convincingly, it could surge toward $135k to $140k:

"When you have that much forced buying pressure, it often creates momentum that carries further than people expect."

Expert Opinions and Predictions

Some market observers remain cautious. Despite the strong upward movement, they warn of a potential pullback to the $114k to $115k range if the price is rejected at the current high. One sharp observer commented,

"This is not the time to chase the market; FOMO can be expensive."

This surge has undoubtedly obliterated many bearish positions, suggesting less resistance overhead. However, many analysts caution against the volatility innate to this market.

Sentiment on the Forums

The community on various forums shared their thoughts:

• "Usually the people with a lot of money who short are also long as well so they’re pretty smart. It’s a win-win."

• "Hold Pepe frog and spam meme posts while trying not to miss the toilet while peeing."

• Reaction to the short squeeze has ranged from jest to disbelief, signaling differing investor sentiments.

Key Takeaways

• △ Over $123 million liquidated in 24 hours due to Bitcoin short squeeze.

• ▽ Market analysts highlight the $120k resistance level as critical.

• ※ "The bears got absolutely obliterated, which means there's probably less resistance overhead now." - Market analyst.

The crypto market remains unpredictable, with this dramatic shift prompting many to reconsider their positions. As always, the tides of crypto can change rapidly.

What Lies Ahead for Bitcoin?

There’s a strong chance that Bitcoin might continue its upward momentum, especially if it convincingly breaks through the critical $120,000 resistance. Experts estimate there’s a 65% probability of this occurring, driven by the recent forced buying. If that happens, many predict a climb towards $135,000 to $140,000. However, should bullish momentum falter and the price retract to the $114,000 to $115,000 range, it could signal a consolidation phase, with about a 35% likelihood of a pullback. Traders should keep a close watch on market sentiment, as the shifting tides can quickly alter expectations and strategies.

A Lesson from the Art Market

This situation bears resemblance to the sudden rises seen in the art market, particularly during auction seasons when demand unexpectedly surges. Just as collectors might bid aggressively, pushing prices of certain pieces beyond estimated values, crypto traders react in kind during market shifts, often succumbing to the thrill of the chase. Such behaviors underscore the unpredictability inherent in speculative investments, where the collective enthusiasm or panic can create spirals that both elevate and devastate value in a matter of hours. History shows that extraordinary spikes can lead to swift corrections, highlighting the importance of caution amidst excitement.