In a recent analysis on X, Bitfinex noted that BTC just saw its largest short liquidation spike since September 2024.
On Feb. 13, 10,700 BTC in shorts were wiped out as the price bounced on better macro data. On this particular day, Bitcoin sharply rose from a low of $65,799 to $69,434, reversing a four-day drop. This action caught bearish traders unawares, possibly creating a short squeeze, which pushed the Bitcoin price higher.
Bitcoin’s price recovered above $70,000 over the weekend, driven by cooler-than-expected U.S. inflation data and increased risk appetite. Bitcoin reached a high of $70,941 on Feb. 15, recovering from a sharp drop near $60,000 earlier in the month.
However, these gains have been slightly reversed, with Bitcoin down 1.91% in the last 24 hours to $69,333. Bitcoin is on track to reverse weekly gains, up just 0.6% in the last seven days, according to CoinMarketCap data.
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This comes as the crypto markets fell Monday, with Bitcoin trading in red before a packed week of economic data. In the last 24 hours, liquidations across the market have reached $280 million, according to CoinGlass data.
Traders are preparing for a busy week of macroeconomic events, including Fed minutes and the core PCE inflation report.
The minutes of the January Fed meeting are expected, as well as the release of the Fed’s preferred inflation gauge, the core personal consumption expenditures price index (PCE), for fresh positioning signals.
What’s next?
Bitcoin posted its fourth consecutive weekly loss, with the cryptocurrency struggling to find clear direction as a weekend rally fizzled. The Bitcoin price ended Sunday down 2.12% for the week, erasing its weekend bounce.
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Bitcoin has dropped more than 40% from its all-time high near $127,000 in October, struggling to latch onto rallies in gold or equities. The broader crypto market has lost almost $2 trillion in value over the same period.
Still, some analysts say the technical picture leaves room for a rebound as there remains scope for a recovery toward initial resistance at $73,000 to $75,000.
Bitfinex noted that if spot demand follows, the recent short squeeze seen on Bitcoin could be the first sign the downside trend is running out of steam.