Bitcoin price breaks $68K on $1B short squeeze
Bitcoin price broke above $68,000 late Wednesday and triggered a $1B short squeeze, lifting BTC roughly 4% in about one minute. BTC later traded near $68,500 after an intraday high near $69,500, up from a Wednesday open around $64,725. The move cleared a 4-hour double-bottom neckline near $65,400 and moved through liquidation bands between $65,000 and $67,500.
Crypto shorts liquidations exceeded $1B within an hour, with total crypto short liquidations later reported at $1.79B, suggesting forced buy-ins accelerated the rally. Analyst Daan Crypto Trades said the squeeze started after BTC crossed a $67,000 liquidation cluster.
Fundamental backdrop helped sentiment: the US Treasury said it will at least double maximum liquidity-support buybacks for 10- to 30-year government bonds from Sept. 9, which pressured yields and weakened the dollar. Separately, the US SEC proposed a “Regulation Crypto Assets” framework on Aug. 18, including tailored registration exemptions that could support crypto fundraising.
Traders’ focus now shifts to resistance. BTC faces a daily resistance zone around $69,000–$70,000, with 4-hour RSI reported near 83 (overbought). A daily close above the zone could open a path toward $72,000; failure may send price back toward $67,000, then the prior neckline near $65,400. ETF inflows were also cited as supporting demand, with US spot Bitcoin ETFs adding notable net inflows on Aug. 17 and Aug. 18.
Bullish
The news is bullish for traders because the BTC move was strong, fast, and structurally important: it cleared a key 4-hour double-bottom neckline near $65,400 and then sparked an outsized short squeeze (>$1B shorts liquidated in about an hour; total crypto short liquidations later $1.79B). That combination typically removes nearby sell pressure (forced buy-ins) and can create a momentum-driven continuation if spot demand follows.
The macro/flow backdrop also leans supportive. Treasury actions that reduce yields and weaken the USD tend to improve risk appetite, and the SEC’s proposed “Regulation Crypto Assets” framework can reduce perceived regulatory uncertainty—both help sustain buying beyond pure liquidation effects.
However, the setup has a near-term risk. With RSI reported overbought (4-hour RSI near 83) and a wick rejection around $69,500, profit-taking or a retest of the breakout is plausible—similar to past squeeze events where price spikes then consolidates around the former resistance.
Short term: expect volatility and a likely retest around $69,000–$70,000 resistance. Long term: if BTC can hold above the breakout area (and spot ETF inflows persist), the liquidation-driven spike can transition into a more durable uptrend. If it fails, the market may revert toward $67,000 and then the $65,400 neckline, turning a bullish catalyst into a bull trap.