Highlights
- Bitcoin reached a peak of $86,332 on Monday, marking its highest price since January.
- CoinGlass reported $877.31 million in crypto liquidations in the last 24 hours, with $740.79 million attributed to short positions affected by the price surge.
- Upcoming events include a summit between Trump and Xi on September 24, a PCE inflation report on September 30, and the September jobs report on October 2, which will serve as critical tests for the rally.
On Monday, Bitcoin climbed to $86,332, its highest level in eight months, a price not observed since January.
As Bitcoin continues to rise and positive sentiment returns to the crypto space, many investors are left wondering what the future holds.
Myriad: What are your predictions for Bitcoin? Make your prediction here.To provide some context, Bitcoin's daily candlestick opened at $81,152, closing with a 4.98% gain, similar to the performance from the previous week. This upward trend follows a recovery that began around $62,000 on August 17, propelling Bitcoin back above the $80,000 mark within a month.
Currently, Bitcoin is still over 30% shy of its record high of more than $126,000 reached in October 2025, while its year-to-date losses have decreased to less than 3%. This indicates that there is still substantial distance to cover before reaching those previous highs, despite last week’s massive short squeeze.
Bitcoin price data. Image: TradingviewCoinGlass noted that $877.31 million worth of liquidations occurred across the crypto markets within the last day, with around $740.79 million (about 84%) coming from short positions that were liquidated as Bitcoin's price surged. In total, over 126,000 accounts faced liquidations, with the largest single liquidation being an $11.29 million BTC/USDT position on Binance, according to CoinGlass data.
Crypto liquidation data. Image: CoinglassBitcoin represented $491.48 million of the total liquidations, while Ethereum accounted for $195.11 million. This trend has been typical of the current rally: short sellers often resist the upward movement, and each increase in price leads to further liquidations, propelling the rally forward.
Macro Influences
Recent declines in oil prices have aided the market's rise. Brent crude has seen four consecutive days of decline amid hopes that tensions between Washington and Tehran might ease during the upcoming United Nations General Assembly, alleviating pressure on inflation-sensitive assets.
Traders are also positioning themselves ahead of the anticipated meeting between Donald Trump and Xi Jinping on September 24. Additionally, the 10-year Treasury yield has dipped back to nearly 4.9% after reaching its highest level since October 2023 earlier this month. Lower yields generally reduce the opportunity cost of holding non-yielding assets like Bitcoin, making them more appealing compared to bonds.
Matt Hougan, Chief Investment Officer at Bitwise, told CNBC that the "crypto winter" has concluded, suggesting that markets may be entering the "strongest and longest bull market in crypto's history."
However, not all experts share this optimistic view. Bitcoin last traded above $85,000 during a downturn in January that saw prices fall to $77,000, and Standard Chartered previously labeled a prior low as "crypto spring" back in June, only for the market to decline again.
Looking Ahead
The Relative Strength Index indicates that Bitcoin is currently overbought, suggesting traders are willing to pay above its intrinsic value. This overbought condition, combined with the current market volatility, indicates that Bitcoin may need to pause or retest the support zone between $79,071 and $80,355 before continuing its upward trajectory.
A weekly close below this support zone could undermine the bullish trend, while remaining above it would keep the path toward new highs intact.
Nonetheless, given Bitcoin's current heated state, exercising caution might be prudent. After an extended period of market downturn, these recent movements could seem more justified than they might in different market conditions. Those betting on Bitcoin's further ascent have reasons to maintain their positions, as the cryptocurrency is currently testing a resistance zone. A breakthrough could see prices soar to $95,000 before encountering another significant volume zone, potentially yielding an additional 15% gain.
Currently, traders on prediction markets are optimistic. On Myriad, a prediction platform developed by Decrypt's parent company Dastan, traders are estimating a 50% chance that Bitcoin will hit $90,000 by the end of the month, with a 28% chance of reaching $92,500.
Bitcoin price data. Image: TradingviewBitcoin's forthcoming movements will be influenced by external data releases it cannot control. Key events include the Trump-Xi meeting in New York on September 24, the Federal Reserve's preferred inflation measure on September 30, the September jobs report on October 2, and consumer price data on October 14.
Disclaimer
The opinions expressed by the author are intended solely for informational purposes and do not represent financial, investment, or other advice.