Huo Xing Finance reports, according to Forbes, Bitcoin recently rose from $62,900 to $79,500, gaining 26% in five days, following the liquidation of over $3.1 billion in short positions. Trader MARMOT stated that this rally was not entirely driven by organic demand but was a classic short squeeze. He noted that approximately $3.1 billion in short positions were liquidated over the past few days—one of the largest liquidation events he has ever seen. Meanwhile, as Bitcoin surged rapidly, retail investors are rushing to buy in, creating clear FOMO sentiment in the market. Geoff Kendrick, Head of Digital Assets Research at Standard Chartered Bank, said his previous prediction of Bitcoin reaching $100,000 by year-end may have been too conservative. He believes Bitcoin could retest its historical high of $126,000 and expects market recovery to accelerate further after October 6. Meanwhile, some market participants warn that the current rally may be overheating in the short term. Trader David Goldstein noted that Bitcoin’s rise from $64,000 to nearly $80,000 was primarily fueled by signals from U.S. Treasury repurchase operations and a rare, large-scale short squeeze. He considers $80,000 the first major resistance level and expects this rally to peak between $85,000 and $90,000, followed by a pullback or consolidation around $70,000–$75,000. Data from prediction platforms show growing market optimism regarding Bitcoin’s future price. Meanwhile, inflows into U.S. spot Bitcoin ETFs have rebounded, with cumulative net inflows of $1.62 billion over the four trading days ending August 21, reversing the net outflows seen in the prior week. However, several traders caution investors against chasing prices amid the rapid rally. Crypto Kit noted that just a week ago, the market was waiting for buying opportunities around $45,000–$50,000; now that Bitcoin has climbed to $77,000, investors have suddenly accepted the current price level—indicating a sharp surge in FOMO sentiment.
Bitcoin rises 26% in five days; analysts warn of potential short-term correction risk
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Summary
Bitcoin news shows a 26% surge over five days, rising from $62,900 to $79,500, with $3.1 billion in short liquidations. MARMOT says the move is a short squeeze, not organic demand. Standard Chartered’s Geoff Kendrick sees potential for Bitcoin to retest $126,000. David Goldstein warns of a correction risk if the $85,000–$90,000 level isn’t broken, with a likely pullback zone at $70,000–$75,000. Retail FOMO is strong, with $1.62 billion flowing into spot Bitcoin ETFs over four days.
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