$122 Million in Short Liquidations Fuels Explosive Bitcoin Rally, Nearing $70,000

▲ Bitcoin (BTC) ©CoinReaders

Amid a massive short squeeze—buying pressure triggered by the liquidation or covering of short positions—and favorable winds from the New York stock market, Bitcoin (BTC) has surged past the $69,000 mark, leading an explosive rally.

According to CoinMarketCap on February 25 (local time), BTC soared 7.16% over the past 24 hours to trade at $69,070.76, driving a 6.95% rise across the overall cryptocurrency market. The primary catalyst behind the sharp spike was a wave of large-scale liquidations in the derivatives market. Over the past 24 hours, $122 million worth of short positions were forcibly liquidated, and the resulting urgent short-covering accelerated the price surge.

At the same time, perpetual futures open interest jumped 10.58%, suggesting fresh capital inflows into the rally. Rather than organic buying alone, the surge appears to reflect a powerful counterreaction as bearish positions collapsed. Bitcoin also showed a high correlation of 98% with the S&P 500 index, which rose 0.82%, indicating that macro factors such as interest rate and liquidity expectations are moving the crypto market in tandem.

Although the market maintains bullish momentum, the Relative Strength Index (RSI 14) has reached 84.19, clearly entering overbought territory. In the short term, a fierce battle is expected between the $67,500 support level, where the seven-day simple moving average lies, and the psychological resistance at $70,000.

If Bitcoin firmly breaks above and stabilizes beyond $70,000, further gains toward a new yearly high could be anticipated. However, if it fails to defend the $67,500 support level, the possibility of a correction toward the 30-day simple moving average around $65,360 cannot be ruled out.

Ultimately, the current rally is the result of combined macroeconomic support and a chain reaction of liquidations in the leveraged market. Despite the broader uptrend, short-term overheating signals have emerged, making it critical to watch whether Bitcoin can establish a stable base above $67,500 with solid trading volume or face a sharp pullback driven by profit-taking.

Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses incurred based on it. The content should be interpreted solely for informational purposes.