Bitcoin Rockets Past $77,000 as Binance Short Squeeze Hits Historic Extreme

What to Know

• Bitcoin trades near $77,439 as Binance short-squeeze pressure reached 6.94, surpassing the major 5.38 reading recorded during November 2024.
• Forced closures of bearish futures positions fueled Bitcoin’s initial rally, creating substantial buying pressure as leveraged traders faced widespread liquidations.
• Spot demand remains important for sustaining higher prices, while growing bullish leverage could increase downside volatility if Bitcoin’s momentum eventually reverses.

 

Bitcoin’s rally above $77,000 coincides with the strongest short-squeeze pressure recorded on Binance since November 2024, highlighting intense derivatives activity. Bitcoin trades around $77,439.39, extending a broader recovery that began near $63,000 and gathered strength through successive futures liquidations.

According to CryptoQuant analyst BorisD, forced closures of bearish Binance futures positions provided substantial momentum during Bitcoin’s initial advance. Bitcoin climbed roughly 14% from $63,000 toward $72,000 as mounting losses forced leveraged short traders from their positions.

CryptoQuant data showed Binance Short Squeeze Pressure reaching 6.94, compared with the 5.38 reading registered during November 2024. Consequently, the latest figure exceeded that previous major squeeze by roughly 29% and surpassed most readings displayed throughout 2025 and 2026.

Short squeezes develop when rising prices force bearish traders to close leveraged positions, creating additional buying pressure across futures markets. Moreover, those purchases can lift prices further, forcing another group of heavily leveraged short traders into liquidation and strengthening upward momentum.

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Binance Liquidations Fuel Bitcoin’s Powerful Move Beyond $77K

CryptoQuant’s chart compares Bitcoin’s price with long and short squeeze pressure across Binance, providing insight into derivatives-driven market movements. Orange bars represent short squeezes, while green readings show periods when falling prices force leveraged bullish traders from their positions.

Significantly, the latest orange spike towers above most observations displayed on the chart, emphasizing the unusual scale of bearish liquidations. Several previous short squeezes accompanied Bitcoin gains, although their readings remained considerably smaller than the latest 6.94 measurement.

BorisD attributed much of Bitcoin’s initial advance toward $72,000 to mechanical position closures rather than sustained spot-market purchasing. Heavy bearish positioning therefore provided considerable buying fuel when Bitcoin moved higher and liquidation levels began triggering across Binance futures. However, Bitcoin has moved beyond $72,000 and reached approximately $77,439.39, extending the rally beyond the analyst’s initial squeeze range.

Spot Demand Becomes Key as Short-Squeeze Pressure Fades

Bitcoin’s extended advance places greater attention on spot demand because forced futures buying becomes less influential once vulnerable shorts disappear. Stronger spot participation could support higher prices, while weaker demand could expose Bitcoin once liquidation-driven buying pressure loses momentum.

Additionally, CryptoQuant’s chart highlights substantial long squeezes during previous declines, showing that leveraged positioning can accelerate movements in both directions. Heavy bullish leverage could therefore increase downside volatility if Bitcoin reverses and forces leveraged long traders to unwind their positions.

Meanwhile, the $72,000 region remains an important reference area because Bitcoin has established significant distance above the initial squeeze destination. Bitcoin’s rise to $77,439.39 demonstrates how extreme bearish positioning helped accelerate a recovery that has extended beyond the original liquidation-driven move.

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