Bitcoin Short Squeeze Forces $43M in Short Liquidations as BTC Reclaims $90K
Bitcoin rallied above $90,000 after a sharp short squeeze that liquidated roughly 658 BTC (about $43 million) in leveraged short positions in a single day. CryptoQuant data cited by Outset PR shows short liquidations jumped from 185 BTC on Nov 25 to 658 BTC on Nov 26, accelerating a market rebound that lifted broader crypto prices by about 4% over 24 hours. Technical indicators signal a corrective bounce rather than a full trend reversal: BTC reclaimed the 7-day SMA (~$87,043) and sits below the 23.6% Fibonacci retracement (~$107,720); RSI (14) is ~39, and MACD remains negative. Key resistance levels to watch are $92,500 (near-term high), the 30-day SMA (~$98,852), and the 38.2% Fibonacci level at $102,500. Traders should note the move was driven mainly by forced short-covering, making follow-through buying necessary to confirm a sustained recovery. Market outlook: short-term relief and improved sentiment, but momentum and structure have not yet shifted decisively to bulls.
Neutral
The immediate effect—a sharp price bounce above $90K triggered by $43M of short liquidations—is bullish in the very short term because forced short-covering creates upward pressure and can spark momentum trades. However, technical indicators (negative MACD, RSI still below neutral, price below key Fibonacci and 30-day SMA) and the article’s emphasis that the move was driven primarily by liquidations indicate the rebound lacks conviction. Historically, liquidation-driven rallies (e.g., short squeezes in 2019 and 2021) often produce quick gains followed by consolidation or renewed weakness unless confirmed by sustained buying, improved on-chain flows, and positive macro/funding conditions. For traders: expect heightened volatility and short-term long opportunities for momentum scalps, but beware false breakouts near $92.5K–$102.5K. Risk-management advice includes using tighter stops, watching funding rates and derivative positioning, and waiting for confirmation above the 30-day SMA or 38.2% Fibonacci level before committing to larger directional positions. In sum, the news signals corrective bullish pressure but not a durable trend reversal.