{"id":31879,"date":"2026-08-26T13:01:50","date_gmt":"2026-08-26T12:01:50","guid":{"rendered":"https:\/\/investx.fr\/en\/2026\/08\/26\/bitcoin-short-squeeze-bullish-reset-analysts\/"},"modified":"2026-08-26T13:01:55","modified_gmt":"2026-08-26T12:01:55","slug":"bitcoin-short-squeeze-bullish-reset-analysts","status":"publish","type":"post","link":"https:\/\/investx.fr\/en\/crypto-news\/bitcoin-short-squeeze-bullish-reset-analysts\/","title":{"rendered":"Bitcoin Crushes Short Sellers: Analysts Say a Historic Bullish Reset Is Underway"},"content":{"rendered":"\n
Bitcoin<\/strong> just absorbed one of the most violent short squeezes<\/strong> in its recent history. Short positions were liquidated in a cascade, propelling the price to levels that are forcing analysts to rethink their market outlook.<\/p>\n\n\n\n Behind this technical move lies an unexpected macro catalyst: the recent actions of US Treasury Secretary Scott Bessent<\/strong>, which are reshaping the macroeconomic backdrop in which Bitcoin operates. Bitwise<\/strong> CIO Matt Hougan<\/strong> sees this as a powerful signal.<\/p>\n\n\n\n Should investors fear the dizzying heights ahead, or is it time to prepare for a new extended bullish phase? On-chain<\/strong> signals and liquidation data are pointing toward a clear answer.<\/p>\n\n\n\n Liquidation data from CoinGlass<\/strong> reveals an extraordinary event: within the space of just a few hours, several hundred million dollars worth of short positions were forcibly closed, triggering the classic domino effect of a major short squeeze<\/a><\/strong>. This type of event occurs when a rising price forces short sellers to buy back their positions, mechanically amplifying the upward move.<\/p>\n\n\n\n This move did not happen in a vacuum. Bitcoin had been trading within a tight consolidation range for several weeks, building up significant selling pressure. Bearish traders had placed heavy bets against a bullish continuation \u2014 a positioning mistake that proved extremely costly. The long\/short ratio across major derivatives platforms<\/strong> had reached extreme levels on the short side before the move was triggered.<\/p>\n\n\n\n On the technical side, the breakout was accompanied by a significant expansion in volume, validating the strength of the move. Previously identified resistance levels were absorbed with relative ease, suggesting underlying institutional demand<\/strong>. CryptoQuant on-chain data<\/strong> also confirms a reduction in exchange inflows \u2014 a classic signal that selling pressure is easing.<\/p>\n\n\n\n\n\n\n\n Beyond the mechanics of the derivatives market, Matt Hougan<\/strong>, Chief Investment Officer at Bitwise<\/strong>, is pointing to a decisive macro factor: the recent actions of Scott Bessent<\/strong> at the helm of the US Treasury<\/strong>. Without going into specific monetary policy details not confirmed by the source, Hougan believes these decisions are creating a favorable environment for the Bitcoin as an alternative reserve asset<\/strong> thesis.<\/p>\n\n\n\n This macro reading fits into a broader context in which institutional investors<\/strong> are scrutinizing every signal coming from US fiscal and monetary policy. A perceived easing of financial conditions \u2014 or a less restrictive posture from the Treasury \u2014 has historically tended to benefit long-duration assets, a category that Bitcoin<\/a> now occupies in the allocation models of many funds.<\/p>\n\n\n\n For analysts tracking spot Bitcoin ETF<\/a><\/strong> flows, this type of macro catalyst can trigger additional waves of institutional buying. US spot Bitcoin ETFs<\/strong> have already demonstrated their capacity to absorb massive volumes during risk-on phases \u2014 and a positive signal from the Treasury side could accelerate that dynamic further.<\/p>\n\n\n\n The central question remains whether this move is sustainable. A short squeeze<\/strong>, however violent, does not in itself confirm a structural bullish trend<\/strong>. Technical analysts are quick to point out that after such an event, the market often enters a digestion phase where former resistance levels become support zones that need to be defended.<\/p>\n\n\n\n The key levels to watch are now the price zones that acted as ceilings during previous breakout attempts. A consolidation above these levels over several consecutive sessions<\/strong> would constitute a far more robust confirmation signal than the initial liquidation move alone. Experienced traders are waiting for exactly this kind of validation before repositioning with significant size.<\/p>\n\n\n\n On the sentiment side, the Fear & Greed Index<\/strong> has seen a notable jump, a sign that short-term euphoria is real. But several analysts point out that the most solid bullish reset<\/a><\/strong> phases are built on precisely this kind of sequence: a violent short squeeze, followed by a healthy consolidation, then a gradual recovery driven by favorable macro fundamentals<\/strong>. The scenario remains open \u2014 but the signals are increasingly stacking up on the bullish side.<\/p>\n\n\n\nA Short Squeeze of Rare Magnitude: What the Data Shows<\/h2>\n\n\n\n
The Bessent Catalyst: When Macro Gives Bitcoin a Second Wind<\/h2>\n\n\n\n
Bullish Reset or False Signal? What Traders Are Watching<\/h2>\n\n\n\n