Bitcoin Hits $79,000 as a 4,362% Liquidation Imbalance Confirms a Massive Short Squeeze

Bitcoin’s rise to $79,214 as per Binance not only marked the highest price level since February, but also triggered a cascade of short position liquidations. According to CoinGlass, the resulting liquidation imbalance became one of the most aggressive this month at 4,362%.

The move began amid declining oil prices, the S&P 500 holding at all-time highs, and a six-day streak of inflows into the U.S. BTC ETFs totaling $1.54 billion. However, the main “fuel” behind the push above $79,000 was not only buying pressure, but also the forced closure of bearish positions. 

Decoding the 4,362% imbalance behind BTC’s $79,000 move

CoinGlass data reveals a critical divergence: out of $34.23 million in total Bitcoin liquidations within an hour, a massive $33.46 million came from short positions. This means that 97.7% of all losses were borne by bears betting against the rally. Overall, in the past 24 hours, total market liquidations reached $394.32 million, with the overwhelming majority again hitting short positions. 

The final element in this setup is the abnormally negative funding rate, which persists despite the rally. According to CryptoQuant data, with Bitcoin at $78,400, funding dropped to -0.02% – meaning bears are aggressively pressing the market, paying a 0.02% premium every eight hours, or about 22% annually, just to maintain short exposure.

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At the moment, BTC is consolidating around $79,000. As previously reported by U.Today, on the weekly timeframe, Bitcoin has opened a path toward $96,600 after breaking above the Bollinger Bands midline. Whether bears have enough resilience to stay in the market longer than price moves against them remains the key intrigue.