Bitcoin Shorts Get Obliterated as BTC Price Briefly Spikes Past $25K, Hits Eight Month High

cryptonews.com:

Bitcoin short-sellers have taken a battering in the past two days. That’s according to data presented by crypto derivative analytics website coinglass.com, which shows liquidations in short Bitcoin future positions worth around $100 million across major exchanges over the past two sessions, during which time Bitcoin has gained an impressive 8.5%.

At current levels in the $24,100 region, Bitcoin is trading just under 13% above earlier monthly lows in the low $21,000s. Bearish calls last week for Bitcoin to fall back towards the $20,000 level ultimately proved wrong, with Bitcoin instead managing to notch a new high since June 2022 on Thursday at $25,270. News that two of the largest Mt Gox creditors will receive most of their payout in BTC, rather than fiat, helped spur Thursday’s spike.

Mt Gox was one of the earliest Bitcoin exchanges, but lost most of its funds due to a hack back in 2014 that caused the exchange to fold, with creditors engaged in lengthy asset recovery proceedings ever since. The Mt Gox-fuelled intra-day rally was, however, short-lived and seems to have caught out some short-term bullish speculators betting on a push to the upper $25,000s, as evidenced by a spike in long position liquidations on Thursday.

According to coinglass.com, long positions worth around $35 million have been liquidated on Thursday, following long position liquidations of only around $5 million on Wednesday. Profit-taking in wake of the recent rally and a stop-run on those who had gotten overly aggressive chasing the upside might well send Bitcoin back below $24,000.

But the recent resurgence from earlier weekly lows means that Bitcoin is still up around 45% this year, despite having now pulled back around 5.0% from earlier session