Bitcoin Surpasses $72,000: The Fate of the Rally After Record Short Liquidations Lies at $70,000

While Bitcoin rose above $72,000 for the first time since May following the record $2.75 billion short liquidation on August 19, analysts state that $70,000 must be maintained for the rally’s sustainability.

Bitcoin (BTC) is trading at $72,345 as of press time, driven by the surge in the cryptocurrency market. According to CoinGlass data, $2.75 billion in short positions were liquidated on Wednesday, making this the largest short liquidation event in crypto history. The rally was also supported by the positive environment created by expanding Treasury buybacks, the SEC’s cryptocurrency proposal, and Donald Trump’s meeting with crypto executives.

STS Digital executive Gideon Hyams said that short squeezes can start rallies but cannot sustain them on their own. Hyams noted that the current surge is supported by demand from the spot market and ETFs, falling long-term bond yields, and expectations of clearer regulation in Washington. Nansen analyst Nicolai Søndergaard also stated that while the closing of short positions accelerated the movement, it did not create the rally on its own.

$70,000 is a critical threshold for Bitcoin

According to analysts, Bitcoin staying above $70,000 will indicate that the surge has moved beyond forced position closures. A potential pullback to the $69,700-$69,000 zone is considered a normal test of the breakout rather than a trend reversal. However, the increase in leveraged long positions elevates the importance of new buying interest.

CryptoQuant founder Ki Young Ju announced that demand for Bitcoin in spot and perpetual futures markets has become positive for the first time since October 2025. He said that if this signal is maintained for another month, it could be concluded that the bear market has ended and a new bull cycle has begun.

The increase in risk appetite is also being observed with XRP rising 20 percent in the last 24 hours and trading volumes increasing 5-fold compared to the annual low seen last weekend.