Bitcoin smashes $80K as $260M shorts get wiped out—next targets $88K
Bitcoin (BTC) staged a sharp revival and broke above $80,000 for the first time since mid-May, later pushing past $81,000. Analysts now flag short-term upside targets up to $88,000.
The rally triggered a liquidation cascade. In the past 4 hours, more than $260 million in shorts were wiped out, with daily liquidations reportedly rising to about $650 million—mostly from short positions, according to CoinGlass. Bitcoin’s move is described as a jump from under $65,000 last Wednesday to just above $81,000 today.
The article points to several catalysts behind the rebound, including a US Treasury Department announcement, a White House Crypto Summit, renewed ETF demand, and market chatter from Jim Cramer (noted as possibly tongue-in-cheek).
Other majors followed: Ethereum (ETH) retested around $2,500 but appears to face resistance near that level despite a ~32% weekly gain. XRP is battling the $1.50 resistance area. Among large-cap alts, Solana (SOL) led with gains above 7.5%, trading above $100 for the first time in months.
For traders, the key takeaway is that Bitcoin’s squeeze dynamics (short liquidation + momentum) can extend near-term upside, but crowded longs near resistance levels may also raise reversal risk if demand cools.
Bullish
Bitcoin’s move above $80K with ~$260M of shorts liquidated in 4 hours signals a classic liquidation-squeeze setup. When shorts are forced out, market depth improves and momentum traders often add risk, which can carry price toward the next stated resistance/target zone ($88K). Similar squeezes have historically produced sharp, trend-like rallies—often overshooting intraday levels before stabilizing.
Short-term, this news is likely bullish because: (1) forced buying from liquidations can extend upside; (2) the market is already reacting with increasing liquidation volumes; and (3) BTC strength is spilling into majors (ETH, XRP) and higher beta names (SOL). Traders may favor momentum longs while price holds above the breakout area.
However, the same mechanism raises reversal risk. Once BTC approaches resistance (e.g., the $81K–$88K region referenced by analysts), late longs and remaining leverage can become vulnerable if ETF demand or macro catalysts fade. In the longer term, the sustainability hinges on follow-through demand beyond the squeeze; if liquidations slow while price stays bid, the move is more likely to convert into a broader uptrend rather than a temporary spike.