Bitcoin is suddenly surgingbut why

Anyone who looked at the $BTC (+5,77 %) chart today probably had to look twice.

BTC jumped from around $64,000 to nearly $69,000 in a very short time. At the same time, more than $1 billion in short positions were liquidated. (MarketWatch⁠)

What happened?

Part of the move was driven by the U.S. Treasury Department’s announcement that it would significantly expand its planned bond repurchases. The market interpreted this as a signal of improved liquidity conditions.

Then came the second effect: the short squeeze.

Many traders were positioned for falling prices. When Bitcoin suddenly broke out to the upside, these positions had to be forced closed. To do so, the short sellers had to buy Bitcoin.

Rising prices → short liquidations → forced buying → even higher prices.

A classic chain reaction.

And that’s exactly why the chart looks so extreme right now.

But for me, the more intriguing question now is:

Was this just a short squeeze—or the beginning of a larger movement?

The $70,000 mark is now interesting from both a psychological and technical perspective. If Bitcoin can establish itself above this zone, it could lead to much more. If, on the other hand, the breakout fails, a large part of the movement may have been driven solely by leveraged positions.

Personally, I find moments like these particularly interesting when it comes to Bitcoin.

Not because I believe Bitcoin has to rise every day.

But because this is a great example of how strongly liquidity, leverage, and market psychology can move the price.

I’m sticking to my long-term Bitcoin strategy and won’t let individual hourly price movements rattle me.

What do you think: $70,000 as a springboard—or is a pullback coming?

#Bitcoin
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#Longterm
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Dirty30@Dirty30

In two months, we'll know better—that's when we'll see whether the "this time it's different" camp or the "four-year cycle" camp was right. https://app.getquin.com/de/post/tEzKrKKBxR/bitcoin-4-jahreszyklus

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jkb92@jkb92

@Dirty30 When it comes to this topic, I always wonder: if big institutional investors are involved now, why would they just sit around and wait until every “4-year-cycle nutcase” has jumped on board?

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@jkb92 That's a good question :D I don't gamble there myself either. I'm invested with an option to buy more, so I'm hedged in both directions. I'm curious to see when the cycle will break.

@Dirty30 That's right!

@jkb92 Since the drawdown is getting smaller and smaller anyway, why shouldn't the cycle also become less pronounced?

@jkb92 That's bound to happen sooner or later. That 50% drop is actually pretty reasonable by BTC standards these days.

Ochrana@Ochrana

In my view, the key factor will be whether we reach the previous highs from May; if so, I think the worst is behind us. However, I will continue to buy in both scenarios.

Bitcoin is suddenly surging—but why?