Bitcoin rallied toward $62,000 as a short squeeze forced bearish traders into heavy losses. Liquidations hit $281 million on short positions over 24 hours, nearly double the amount wiped from long positions. The move represents Bitcoin's strongest performance in two weeks.
Ether followed suit, gaining almost 10% week-over-week. Solana outpaced both, climbing nearly 19% in the same period. The rally extended across major altcoins as momentum shifted sharply in favor of bulls.
The squeeze accelerated as broader tech stocks rebounded, easing pressure from the AI trade that has dominated market narratives. When tech equities stabilized, capital rotated back into crypto assets, particularly Ethereum and Solana, which had lagged during periods of tech sector weakness.
Short liquidations tell the real story here. Traders who bet on lower prices got caught in a vise as buying pressure mounted. The $281 million in short liquidations versus roughly $140 million in long liquidations shows bears were caught more exposed than bulls. This type of asymmetric liquidation cascade often accelerates rallies as forced sellers trigger stop-losses and margin calls cascade through the system.
The timing matters. Bitcoin spent the previous two weeks consolidating below resistance. This squeeze broke through that stasis, with the $62,000 level now acting as fresh resistance for the next leg. Ether's 10% weekly gain suggests it's following Bitcoin's lead but with added momentum from renewed interest in layer-2 scaling and DeFi protocols.
Solana's 19% outperformance hints at sector rotation into network tokens that underperformed during the prior weeks. The gap between Solana's gains and Ether's suggests traders are chasing relative strength rather than buying based on fundamental narratives.
The short squeeze provides technical confirmation of