Bitcoin Hits $68K as Short-Squeeze Triggers 6% Surge

Bitcoin surged over 6% to $67947 on Thursday, a recovery that ignored weeks of negative price action, and this jump was catalyzed by bargain hunters along with a sharp short-squeeze.

Discounted levels were entered by traders after the near 50% drop in the asset since its high in October of about 130 000, as well as the losses of 23% year-to-year, were compounded by market volatility.

Dip-Buying as Catalyst to the Rebound

The rally was enhanced by vicious dip-buying tactics, and the investors were focusing on the low valuation of Bitcoin compared with its previous high of $87,000 one year ago.  Within the last 24 hours, short sales on different networks reached 474,000,000, not to mention 194,000,000,000 that was only related to Bitcoin, based on Coin glass statistics. 

This consolidation of short-premises has intensified the rising trend as the asset regained levels of 64074 on the previous day and registered at $67947 today, and recovered most of the fall made that week.

Investment Risk Sentiment Wall Street Market-driven”, Risk-On

The move has been intensified by positive signals on Wall Street; technology equities went up after Nvidia announced strong earnings in Q4. The AI semiconductor conglomerate beat expectations with adjusted earnings per share of 172 instead of 153 predicted, and gave guidance of 785 billion in the first quarter, but futures dropped 0.2% on inventory concerns.

Cryptocurrency markets tend to reflect the U.S. technology markets, and the sentiment did not drop, although the Fear-and-Greed Index was at an extreme-fear range of 11/100.

Altcoin Participation

The increase in momentum was absorbed by secondary cryptocurrencies; Ether climbed 9% to $2 056, XRP rose 5% to $1 43, and Solana grew 27% to $87.  BNB, Dogecoin, and Cardano achieved returns between 7 and 15.  One such meme token, $TRUMP, was gaining by 3.5%, but most were very much negative in the past few months.

Future Prospect Breakout Consolidation

Analysts predict a 59% probability that Bitcoin could reach $98,000 if it breaks its current wedge pattern. This probability is based on previous gains in February. Philip Gradwell, a leading Chain lysis researcher, notes that a short squeeze may indicate capitulation. If bargain buying occurs and the macroeconomic situation normalizes, Bitcoin could rise to $100,000. However, persistent negative sentiment, high volatility 71% per month in ETF, and China-related risks connected to Nvidia could temper this optimism. Monitoring ETF inflows and U.S. policy helps in projecting the future trend. Recovery is possible, but it may remain below bear market levels, under $64,000.