Bitcoin (BTC) 'Wiped Out' Betting on Decline... $1 Billion Liquidation Shock Targets $90,000

▲ Bitcoin (BTC)

Bitcoin (BTC) surpassed $87,000, setting a new 8-month high. A powerful short squeeze (buying pressure occurring to liquidate or cover short-selling positions) led to $1 billion worth of forced liquidations in the derivatives market.

According to CryptoPotato on September 21 (local time), Bitcoin started last week at the $75,000 level and continued its sharp recovery, reaching $87,000 during the trading session. Its market capitalization also surged to approximately $1.8 trillion. As the price continued to soar, leveraged investors who had bet on a decline faced massive liquidation pressure. According to Coinglass data, over 139,000 positions were forcibly closed within 24 hours. Of the total liquidation amount of approximately $1 billion, short positions accounted for $900 million. The single largest liquidation order was a $20 million one that occurred on the decentralized exchange Hyperliquid.

The chain reaction of massive forced liquidations acted as additional buying pressure. After breaking through resistance levels one after another, the market's attention is now focused on whether it will break through $88,000 and $90,000. Technical analyst Doctor Profit pointed to Bitcoin's recapture of the 50-week moving average, located near $78,700, as a key bullish signal, suggesting $88,000 as a short-term target price.

Experts diagnosed that a strong selling resistance wall is positioned in the $88,000 range. If it settles above this resistance level, the upward trend could continue to $90,000 and $95,000. Conversely, within the rally, the $80,000 and $82,000 ranges have transformed into key support levels.

Market attention is focused on whether the upward momentum, fueled by the mass liquidation of short positions, will break through the $88,000 barrier and lead to a stable settlement at $90,000.

[Article Key Summary]

-Bitcoin (BTC) surpassed $87,000, reaching an 8-month high.

-A total of $1 billion in forced liquidations occurred in the derivatives market, including $900 million in short positions.

-With the recovery of the 50-week moving average, a breakthrough of $88,000 raises the possibility of entering the $90,000 range.

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