Bitcoin (BTC) experienced significant volatility during Thursday’s New York market open, trading between $73,000 and $75,000. This sharp movement led to the liquidation of $283 million in futures positions, with a notable $166 million in long positions being closed as BTC dipped to $73,200 before reversing back toward $75,000 due to a short squeeze that liquidated an additional $117 million.
Despite the rebound, the sustainability of this price action is in question as spot market demand remains weak, indicated by a declining cumulative volume delta. The current upward momentum appears driven by short-covering rather than new long positions, suggesting that for Bitcoin to break through the critical $76,000 resistance, stronger spot buying is essential.
Market participants should closely monitor liquidity levels, particularly the $76,000–$78,000 range, which contains significant short-leveraged liquidity. A failure to clear these levels could lead to a pullback toward the $72,000 area, where long-leveraged liquidity resides.
Source: cointelegraph.com