Summary
- Bitcoin surged by 9.3% this week, reaching an intraday peak of $69,749 and trading around $68,689, a significant increase from its opening price of $62,832.
- According to CoinGlass, $1.14 billion in short positions were liquidated in the past hour across the crypto market, with Bitcoin alone contributing $677.64 million to this figure.
- This price surge occurred just before a White House meeting involving President Trump, crypto leaders, and key regulators, as well as the release of the Federal Reserve's July meeting minutes, both scheduled for Wednesday.
Bitcoin is making a strong move towards the $70,000 mark again. The leading cryptocurrency by market capitalization reached an intraday high of $69,749 on Wednesday and is currently trading near $68,689, reflecting a 9.3% increase from earlier in the week according to Bitcoin data from Bitstamp.
This rise marks a recovery that has seen Bitcoin rebound approximately 19% from its recent low of $57,735, although it still lags behind its all-time high of over $126,000 established in October 2025.
Myriad: What’s next for Bitcoin? Share your prediction.This rally is largely driven by a wave of short liquidations. CoinGlass reports that $1.14 billion in short bets were wiped out in the last hour, part of a total of $1.22 billion liquidated during that timeframe. Bitcoin accounted for $677.64 million, while Ethereum and Solana contributed $422.90 million and $37.88 million, respectively.
A liquidation occurs when an exchange automatically closes a leveraged position because the trader's collateral cannot cover losses. Short selling involves betting that an asset's price will decrease; when Bitcoin's price rises instead, those short positions incur losses, leading exchanges to sell them to mitigate risk. This forced buying can further elevate prices, creating a feedback loop known as a short squeeze.
The recent short liquidations represent about 87% of the total short liquidations in the past 24 hours, which totaled $1.31 billion across 112,004 traders, according to CoinGlass. The largest individual liquidation was a $32.18 million Ethereum position closed on Bitget. Traders who have shorted these assets are now compelled to repurchase them at a loss, which in turn drives prices higher.
This dynamic, known as a short squeeze, has become a common occurrence in the volatile bear-market rallies of 2026. A similar situation occurred in April when Bitcoin's rise above $75,000 resulted in over $600 million in liquidations in just one day, primarily from short sellers caught off guard by a sudden shift in market sentiment.
The current rally comes just before a White House meeting where President Trump will engage with SEC Chair Paul Atkins, CFTC Chair Michael Selig, and executives from Coinbase, Ripple, and Kalshi to discuss regulations governing the crypto market. Additionally, the Federal Reserve's minutes from its July meeting are set to be released later on Wednesday, with traders reducing their expectations for a rate hike that had previously peaked at over 80% earlier this year, based on prediction market data.
Spot Bitcoin ETFs are also contributing positively, reversing a trend of outflows to become net positive again this week. Anthony Scaramucci of Skybridge Capital remarked that this rebound indicates that Bitcoin's bear market might be nearing its end, noting that the asset has experienced a 55% drawdown from its peak, which is less severe than in previous cycles.
The data reflects a different narrative compared to the prevailing bear-market headlines.
This is undeniably a Bitcoin bear market, yet we have only seen a 55% decline, whereas past bear markets have seen drops of 75-80%.
This is strangely a positive indicator; it suggests that many net buyers are already positioning themselves… pic.twitter.com/wy7gtlmC4r
— Anthony Scaramucci (@Scaramucci) August 18, 2026
Bitcoin Price Analysis
Bitcoin's weekly chart started at $62,832 and is closing near $68,689, with a trading range from $62,690 to $69,749. This positions the price near the golden pocket, a resistance area identified between $70,284 and $73,245.
The momentum is strong enough to push Bitcoin above its 200-day average price, which alleviates some bearish pressure and sustains a bullish sentiment for the week, despite bearish trends in shorter timeframes.
Key levels to monitor include $70,284, the lower boundary of the golden pocket and a concentration of short interest. A daily close above this level could pave the way towards $73,245. Conversely, if Bitcoin closes below $68,000 on a daily basis, it would re-enter the range that has constrained it since June.
Disclaimer
The opinions expressed by the author are intended for informational purposes only and should not be construed as financial, investment, or other forms of advice.