The move followed a wave of short liquidations, with traders betting against the uptrend suffering significant losses.
According to market data, Bitcoin’s latest breakout triggered nearly $64 million in liquidations, with short positions accounting for $49 million of that total. Across the broader crypto market, over $302 million in leveraged trades were wiped out in the past 24 hours, signaling aggressive volatility and renewed bullish momentum.
RSI Signals Overbought Zone
Technical indicators suggest the rally may be entering an overheated phase. The Relative Strength Index (RSI) has climbed to around 74, pushing into overbought territory on the daily chart. Historically, readings above 70 often precede short‑term corrections, though Bitcoin’s strong momentum could extend the upside before any cooldown.
After consolidating around $108,000 earlier this month, Bitcoin has now rallied over 16 % in less than two weeks. The current advance is being fueled by a combination of renewed institutional interest and a broader risk‑on mood in global markets.
Short Squeeze Amplifies Gains
The sharp rise in price also reflects a classic short squeeze, as bearish traders are forced to cover their positions amid rapid upward pressure. Analysts note that liquidations of this magnitude often act as accelerators, driving Bitcoin even higher as shorts exit the market.
If the bullish momentum continues, Bitcoin could next test resistance near $128,000, a key psychological and technical level. However, if the RSI remains overheated, a brief correction back toward the $120,000‑$122,000 range would be considered a healthy retest zone.
Market Outlook
Despite the possibility of short‑term pullbacks, Bitcoin’s broader trend remains decisively bullish. With institutional inflows rising and spot ETF volumes maintaining strength, market sentiment points toward continued optimism heading into the final quarter of 2025.