Bitcoin Surges Past $73,000, Short Squeeze Triggers $350 Million Liquidations

Bitcoin has recently rebounded strongly, breaking through $73,000 and reaching its highest level since late February. In just a few hours, the price rapidly rose from a support level of $68,200 to a high of $72,450, eventually stabilizing around $72,120, a single-day increase of 5.8%. This completely reversed the market panic previously triggered by tensions in the Middle East. Behind this rebound is an unprecedented short squeeze. Data shows that the total liquidation of crypto assets across the market reached $395 million, with a staggering 89% coming from short positions. Bitcoin alone led to the forced liquidation of $312 million in short positions on major platforms such as Binance, Bybit, and OKX, dealing a devastating blow to the shorts.

This liquidity storm quickly spread to other digital assets. Ethereum rose 8.2% to $2,100, with short liquidations reaching $68 million. Solana surged 11% to $185, clearing out $42 million in related short positions. High-volatility assets such as XRP and Dogecoin also strengthened significantly, rising 9.2% and 14% respectively, with prices reaching $1.42 and $0.28. The total market capitalization of altcoins surged by $180 billion in a single day, and the total trading volume exceeded $112 billion, indicating that funds are shifting from short covering to active accumulation. The shift in the macro environment provided crucial support for this round of price increases. As the U.S. Navy strengthened its escort in the Strait of Hormuz, Brent crude oil prices fell from a high of $84.38 to around $81.50, significantly alleviating market concerns about inflation getting out of control due to soaring oil prices. At the same time, the U.S. statement that the “mission is basically complete” regarding the Iranian situation also prompted investors to shift from expectations of a “long-term conflict” to a judgment of “localized control,” and risk appetite clearly rebounded. The dollar index fell 0.8%, and gold prices fell from a high of $5,400, further confirming the trend of funds flowing back into risk assets.

Technically, Bitcoin has successfully converted the $72,000 level into a support level. The 20-day exponential moving average has changed from resistance to support, and the RSI indicator has rebounded from the oversold zone of 32 to the neutral level of 58, without entering the overbought zone, indicating that the upward trend has sustainability. The current key support is located in the $70,500 to $71,000 range, while the upper resistance points to the previous high of $74,200. Although the perpetual contract funding rate has turned positive, it remains at a moderate level of +0.01%, without any signs of frantic buying, indicating a healthier reconstruction of the long positions. At the same time, the total locked value in the DeFi News sector increased by 7% to $145 billion, and the transaction volume of Layer 2 networks surged by 22%, reflecting an overall recovery in market risk sentiment. If crude oil prices stabilize below $83 and there are no new fluctuations in the Iranian situation, Bitcoin is expected to hit $75,000 this weekend. However, if tensions in the Middle East escalate again or macro risks suddenly increase, the market may quickly retest the $69,000 support level. Currently, the large-scale collapse of the shorts has clearly declared that the bulls have regained control of the market.