Key facts
- Bitcoin reached $86,332 on Monday, its highest price since January.
- Crypto markets saw $877.31 million in liquidations over 24 hours.
- Approximately $740.79 million of the liquidations came from short positions.
- Bitcoin accounted for $491.48 million of the total liquidations.
- Falling oil prices and anticipation of a Trump-Xi meeting are seen as macro tailwinds.
- The Relative Strength Index indicates Bitcoin is currently overbought.
Bitcoin surged to $86,332 on Monday, marking its highest price since January and extending a rally that began near $62,000 on August 17. This upward movement was significantly fueled by a short squeeze, which saw nearly $741 million in bearish positions liquidated over the past 24 hours, according to CoinGlass. The total crypto liquidations reached $877.31 million, with Bitcoin accounting for $491.48 million of that tally.
Macroeconomic factors are also contributing to the positive sentiment. Falling oil prices, driven by hopes of easing US-Iran tensions, have eased pressure on inflation-sensitive assets. Additionally, anticipation of a meeting between Donald Trump and Xi Jinping on September 24, coupled with a slip in the 10-year Treasury yield back near 4.9%, has made non-yielding assets like Bitcoin more attractive relative to bonds.
Bitwise Chief Investment Officer Matt Hougan expressed optimism, stating that the 'crypto winter' is over and markets may be entering a prolonged bull market. However, the market is showing signs of being overbought, with the Relative Strength Index indicating a need for caution or a retest of the $79,071 to $80,355 support zone. Breaking below this zone could undermine the bullish structure, while holding above it keeps the path to new highs open. Prediction market traders are pricing in a 50% chance of Bitcoin hitting $90,000 before the end of the month.