Bitcoin Short Squeeze Fuels Rally Toward $122,000 Resistance Zone

Bitcoin has surged toward the $122,000 mark following a wave of short liquidations, echoing market behavior last seen in November 2024.

According to the latest chart analysis from Matrixsport, over $900 million in short positions were wiped out in the past seven days, significantly pressuring bears and propelling BTC to fresh highs of $120,061.

This spike in liquidations mirrors a similar setup from late 2024, when traders faded a major rally that ultimately reversed on tariff-driven news.

Back then, short liquidations hit $1.1 billion, a level not far from the current squeeze. The aggressive positioning by bears this time around appears to have backfired again, as Bitcoin’s price jumped sharply after reclaiming key support near $106,000.

Notably, this rally is unfolding in July—historically one of the strongest months for crypto markets. With the highly anticipated U.S. “Crypto Week” approaching, market sentiment is turning increasingly bullish.

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Analysts note that a clean breakout above $122,000 would confirm a key psychological and technical milestone, continuing Bitcoin’s pattern of moving in $16,000 increments.

The combination of seasonal strength, institutional interest, and forced buybacks from liquidated shorts has now created favorable momentum. If bulls can sustain pressure above $120,000, Bitcoin could be poised for its next major leg higher.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.