Bitcoin Price Prediction: BTC Surges, Shorts Wiped Out

Key Takeaways

• Over $1 billion in short positions were liquidated in 24 hours as Bitcoin surged past $116K.
• BTC and ETH were the top targets in the short squeeze, wiping out hundreds of millions in bearish bets.
• Market sentiment remains bullish, with the Fear & Greed Index still in “Greed” territory.
• While some analysts warn of short-term resistance, others believe a larger breakout could be underway.
• Bitcoin price prediction models must now account for a higher support level around $112,000.

Over $1 Billion In Crypto Shorts Liquidated

According to CoinGlass, a staggering $1.01 billion in crypto shorts were wiped out across 232,149 traders in just 24 hours.

Source: CoinGlass

This monumental short squeeze not only rattled the bearish camp but also reignited discussions across the market regarding the future of Bitcoin price predictions and whether this is just the beginning of an even more significant rally.

Bitcoin surged from $112,000 on Wednesday to $116,500 on Thursday, marking a two-day streak of new all-time highs. Ether (ETH) wasn’t far behind, climbing to $2,990, triggering widespread altcoin momentum.

Market Reactions

The unexpected breakout forced traders and analysts to quickly reevaluate their Bitcoin price prediction models.

A Classic Short Squeeze

Crypto analyst Miles Deutscher described the event succinctly on X, saying:

“Bears in disbelief.”

Prominent trader Daan Crypto Trades chimed in, calling it a:

“MASSIVE short squeeze on BTC & ETH.”

Others, like Velo, highlighted the sheer scale of the liquidation, humorously noting:

“Lots of emails are being sent.”

 

Sentiment Still In “Greed” Zone

Despite the shockwaves, the Crypto Fear & Greed Index stayed steady at 71/100, maintaining its “Greed” classification. While down slightly from last week’s score of 73, this suggests bullish sentiment remains firm.

Crypto Fear & Greed Index

Source: Alternative.me

Where Do We Go From Here?

Earlier this week, not everyone was convinced Bitcoin would hit new highs. Analysts at Bitfinex observed a “lack of follow-through strength” in BTC’s momentum, suggesting traders were showing signs of hesitation.

On the other hand, Michaël van de Poppe, founder of MN Trading Capital, held a more bullish stance. On June 30, he predicted:

“The inevitable breakout to an ATH on Bitcoin might even happen during the upcoming week.”

That forecast turned out to be spot on.

FAQ

What caused the massive short liquidation in Bitcoin?

The short liquidation was triggered by Bitcoin hitting a new all-time high of $116,500, forcing short sellers to cover their positions.

Is this a bullish signal for Bitcoin?

Yes, a large-scale short squeeze often signals bullish momentum. However, it can also result in temporary volatility as the market digests the move.

Could Bitcoin correct after this rally?

Yes. With over $2 billion in long positions vulnerable, a drop to $112,000 could result in further liquidations, reinforcing short-term volatility.

What are analysts predicting for Bitcoin next?

Predictions vary. Some analysts see continued upward momentum, while others warn of a potential retracement before the next leg up.