Bitcoin Nears $80,000 After a Historic Short Liquidation: Is the Bull market started?

In my previous analysis, I was quite clear: Bitcoin was not bullish yet unless it was able to reclaim and decisively break above the $67,000 area.

At that time, while many were still expecting further downside, my view was that Bitcoin was moving through an accumulation phase, very close to what could ultimately become the dip of this correction. That is why I considered purchases below $65,000 to be an interesting accumulation opportunity for investors looking beyond the short-term move.

I also highlighted something important: after so many weeks of compression, once Bitcoin managed to break out of that structure, the move was likely to be violent.

And that is exactly what we have seen.

Bitcoin broke above $67,000, quickly accelerated beyond $70,000 and eventually reached approximately $79,000–$80,000, marking one of the most aggressive upside moves of recent months.

A Historic Liquidation of Short Positions

But behind this rally there is one particularly important factor: the enormous short squeeze that took place across the market.

During the breakout, billions of dollars in bearish positions were liquidated. Around $3 billion in short positions were wiped out during the initial move out of the range, making it one of the largest short-liquidation events seen in years. As the rally continued, cumulative estimates exceeded $4 billion.