Bitcoin Price Tests $68K As $6B Shorts Target Strategy

Key Insights:

• Bitcoin price surged nearly 5% to $68,000, supported by $506M BTC spot ETF inflows, with BlackRock’s IBIT leading at $297M.
• MicroStrategy (MSTR) tops US large-cap short interest lists with $6B shorts (14% of $42B mcap) as shares trade below BTC reserves per share.
• MSTR now represents 99.2% of corporate Bitcoin purchases,

Bitcoin price surged nearly 5% today, hitting a local high of $68,382. This move followed massive capital injections into spot BTC ETFs.

In particular, yesterday, new liquidity to the tune of $506 million was injected into the market. BlackRock IBIT was at the top with the net inflows of $297 million. This institutional requirement was a major boost to the volume of trading in Bitcoin.

During the BTC price rally, traders kept a close eye on the $67,500 area. This level was a vital level of support of Bitcoin in the London session. Firm purchasing influence could not allow any drastic retreat beyond this level.

The market sentiment is also positive, with the asset moving towards the barrier of the psychological price of $70,000. Crypto analyst Michaël van de Poppe predicts a Bitcoin (BTC) price rally towards $75K at the start of March.

The Impact of $6B Shorts on Bitcoin Price Volatility

MicroStrategy (MSTR) has been one of the leaders in this Bitcoin price rally. The company is now leading in large-cap short interest lists in the US.

In the present situation, traders carry more than $6B shorts against the software giant. This amounts to 14% of its total market capitalization of $41.6 billion.

Interestingly, the MSTR stock is underpriced relative to its BTC holdings. The conviction of the $6B shorts positions is full of this price gap.

A reduction in the premium is being bet by short sellers. But the increasing price of Bitcoin (BTC) poses a threat to these bears.

A sharp price increase might result in a huge short squeeze. This would have compelled bears to repurchase shares at a fast rate. This trend creates a backwind to the wider crypto market.

MicroStrategy Dominates Corporate Treasury Holdings

MicroStrategy is also pursuing its aggressive strategy of acquiring Bitcoin. The company represents 99.2% of all corporate purchases of Bitcoin.

Michael Saylor has succeeded in making the company a Bitcoin proxy. This kind of commitment is not anticipated in other public companies.

The company added 785,224 shares in the fourth quarter of 2025, reflecting a 473% increase over the previous quarter.

However, compared to the headline percentage, the absolute cash amount presented a more complex picture. The 951,187-share position represented almost $125 million in common-share exposure at current prices close to $135.65 per share.

Technical Analysis: Bitcoin Price Support Level and Resistance

Technically, Bitcoin appears to be very strong. On the daily chart, Bitcoin (BTC) price remains resilient, chopping around $65K, a sign of strong bids and healthy consolidation.

But the weekly view tells a different story: six consecutive weekly closes lower, RSI hitting an all-time low below 25, and clear oversold conditions.

Alex Thorn, Galaxy Digital’s chief of research, stated that the weekly RSI is “lower than any time except the darkest of bears.”

The 50-day moving average is also moving in an upward direction for Bitcoin price. This indicator is the confirmation of the medium-term bullish momentum.

In the meantime, the Relative Strength Index (RSI) is at 43. This value indicates that the asset is yet not overbought. The appreciation is yet to peak before a cooling down phase.