The cryptocurrency market is experiencing heightened volatility, with Bitcoin surging over $91,000 after dropping below $84,000 just a day prior. According to analysts from the Kobeissi Letter, this spike represents the largest daily increase since May.

BREAKING: Bitcoin is on track for its biggest daily gain since May 2025, nearing $91,000, as levered short liquidations surge. In just the last hour, approximately $140 million worth of shorts were liquidated while longs barely registered at $3 million.

These price fluctuations, as noted by analysts, appear to be driven by mechanical trading rather than foundational industry changes, which remain strong. The Kobeissi Letter emphasizes that the recent market swings are not indicative of underlying weaknesses.

In the aftermath of this rise, the total value of wrecked positions has hit nearly $380 million, with shorts making up the majority of losses, totaling over $300 million. The heaviest single short liquidation occurred on Bybit, amounting to $13 million.

Despite the volatility, analysts maintain a bullish outlook for Bitcoin, provided it remains above crucial support levels around $83,000. The potential for continued growth also hinges on overcoming the next formidable resistance at $91,800.

Liquidation Data on CoinGlass

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