In my previous analysis, I was quite clear: Bitcoin (BTC) was not bullish yet unless it was able to reclaim and decisively break above the $67,000 area.
At that time, while many were still expecting further downside, my view was that Bitcoin was moving through an accumulation phase, very close to what could ultimately become the dip of this correction. That is why I considered purchases below $65,000 to be an interesting accumulation opportunity for investors looking beyond the short-term move.
I also highlighted something important: after so many weeks of compression, once Bitcoin managed to break out of that structure, the move was likely to be violent.
Bitcoin / U.S. Dollar – Daily Chart
BTC/USD daily chart showing the accumulation range, breakout above $67,000 and the key $82,000–$84,000 resistance zone.
And that is exactly what we have seen.
Bitcoin broke above $67,000, quickly accelerated beyond $70,000 and eventually reached approximately $79,000–$80,000, marking one of the most aggressive upside moves of recent months.
A Historic Liquidation of Short Positions
But behind this rally there is one particularly important factor: the enormous short squeeze that took place across the market.
During the breakout, billions of dollars in bearish positions were liquidated. Around $3 billion in short positions were wiped out during the initial move out of the range, making it one of the largest short-liquidation events seen in years. As the rally continued, cumulative estimates exceeded $4 billion.
This matters because it partially explains the speed and violence of the move.
As Bitcoin began breaking through resistance levels, traders positioned short were forced to close their positions. Those closures create forced buying, which pushes the price even higher and triggers further liquidations.
It is the classic domino effect of a short squeeze.
After several weeks trading within a relatively narrow range around $60,000–$65,000, there was a significant amount of fuel waiting for a breakout.
Reaching $80,000 Does Not Mean Everything Has Changed
This is where I believe we need to separate emotion from market structure.
After such a vertical move, it is very easy for the market to go from extreme fear to FOMO in a matter of days. But the fact that Bitcoin has moved from the $60,000–$65,000 area to nearly $80,000 does not automatically mean that the broader bearish structure is over.
Looking at the daily chart, Bitcoin has managed to break the descending trendline that had been respected for much of 2026.
That is the first positive signal.
However, we are now approaching an area that, in my view, is far more important: $82,000–$84,000.
This area represents a relevant horizontal resistance zone and a region where selling pressure previously emerged.
For that reason, I believe Bitcoin needs to reclaim and consolidate above approximately $82,000 before we can start talking about a much more convincing structural shift.
Until then, the current move can still be interpreted as a very strong rally within a broader structure that still requires confirmation.
Now the Market Has to Prove It
My scenario has changed compared with when Bitcoin was trading below $65,000.
At that point, we had accumulation, negative sentiment and a compressed structure with the potential to generate a strong expansion if Bitcoin reclaimed $67,000.
That move has now happened.
I would not buy simply because Bitcoin has risen around 20% and everyone has suddenly become optimistic again.
Now I want confirmation.
The $80,000–$84,000 area is, in my opinion, the real test.
A clear breakout, supported by volume and followed by the area being defended as support, would significantly strengthen the case that the bottom is already behind us and could open the door to a new bull-market phase.
If Bitcoin is rejected from this area, we could see a short-term correction. The depth and structure of that correction would then need to be analysed as it develops.
A strong rejection would also force us to consider the possibility that this move was primarily a massive short squeeze before the market continues within a corrective structure.
Bitcoin has already completed the first part of what we expected: it broke out of the accumulation range, and it did so violently.