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.