Bitcoin V‑Shape Rally Triggers $330M+ Liquidations as Shorts Squeezed
Bitcoin staged a sharp V-shaped recovery on Feb 25, 2026, rallying roughly 8% from a 24-hour low of $63,894 to about $69,483 and reclaiming the $69.5k area. The rapid bounce ignited a large short squeeze: data shows more than $330 million in positions liquidated in the past 24 hours, with short liquidations dominating (about $321.15M in a 12-hour window and $247.98M during a single 4‑hour “Rekt” event) versus roughly $11.17M in long liquidations. Analysts noted the move may mark a local bottom and highlighted correlations between BTC and tech/software stocks as supporting factors. Key market metrics at the time reported BTC near $68,989 (up ~7%) with elevated trading volume. Traders should note the dominance of short liquidations, the speed of the reversal, and the potential for increased short-term volatility as positions are repriced and liquidity returns to the market.
Bullish
The news is classified as bullish because a strong, rapid price reversal that forces large short liquidations typically reduces short interest and can fuel further upside momentum. Over $330M of liquidations—predominantly shorts—implies significant forced buying, shrinking the supply of bearish paper and causing price discovery to re-test higher levels. Historically, large short squeezes (e.g., past BTC squeezes in 2019–2021) often produce sustained short-term rallies and can convince traders that a local bottom has formed, attracting renewed long-side participation. In the short term, expect elevated volatility as deleveraging completes and stop orders cascade; price may retrace as profit-taking occurs. In the medium term, if follow-through buying and improved market structure (higher lows, retest above prior support) occur, sentiment could shift more durably bullish. However, traders should monitor volume confirmation, funding rates, open interest, and macro factors—if liquidity is thin or macro risk reappears, the move could be vulnerable to reversal despite the bullish mechanics of a short squeeze.