Bitcoin climbed above $72,000 on Thursday, reaching its highest price since June after gaining nearly 15% since Monday. The upward movement wiped out more than $3 billion in crypto short positions, marking the largest liquidation of Bitcoin short positions since at least 2021. Spot Bitcoin ETFs also contributed to the activity, pulling in $517 million on Wednesday for their largest single-day inflow since May.
Industry analysts attributed the rally to a combination of macroeconomic factors and market mechanics. Julio Moreno, head of research at CryptoQuant, pointed to U.S. Treasury purchases of long-dated government bonds—interpreted by markets as an increase in liquidity—alongside policy headlines and President Donald Trump suggesting the U.S. government could purchase Bitcoin. Adam McCarthy of Lo:Tech and other analysts noted that a massive short squeeze amplified the gains, with more than half of Wednesday's increase occurring within a single hour.
While the technical picture has improved, experts emphasize that the market faces new considerations now that the initial squeeze is largely exhausted. Nicolai Sondergaard of Nansen highlighted that Bitcoin has reclaimed its 200-day simple moving average near $69,000, setting immediate resistance near the recent high of approximately $72,824. However, Sondergaard and McCarthy warned that the rally relied heavily on forced liquidations rather than fresh, sustained buying.
Looking ahead, analysts are monitoring various technical and macroeconomic indicators to determine Bitcoin's trajectory. Moreno is watching the 365-day moving average around $83,000 and the CryptoQuant profit-and-loss index and bull score, which have not yet shifted into bullish territory. James Butterfill of CoinShares and other researchers expect market conditions to remain constructive due to shifting monetary policy expectations and renewed accumulation by large holders, though many anticipate a range-bound environment rather than an immediate, durable breakout.
