Bitcoin climbed above $79,000 on August 21, with its gain for the week reaching 25%. This movement was accompanied by massive short position liquidations and became a topic of discussion among several analysts and traders on the social network X.
Short Liquidations Amid the Rally
Crypto YouTuber Crypto Rover drew attention to the volume of forcibly closed positions: according to CoinGlass, over $1.2 billion worth of short positions were liquidated in the last 24 hours. He characterized the candles on Bitcoin's chart as extremely aggressive towards bears—the sharp upward move caught those betting on a price decline off guard.
Technical Targets and a Possible Correction
Trader and investor Crypto Candy noted that after breaking out of the consolidation zone, Bitcoin quickly reached both previously identified targets—$70,700 and $75,000—within a single day. In his assessment, a short-term pullback is possible, but if the current momentum persists, moves towards $77,000 and then $83,000 are not out of the question. He stated this scenario remains relevant as long as the price holds above the $70,000 level.
Trader Roman shares a similar view. He reminded that as early as August 19, during a live broadcast, he spoke about the potential for a move to $75,000 in the coming days—a prediction that has now materialized. His assessment was based on a bullish deviation, a divergence indicator reversal, and the overall price action structure. According to him, a sustained uptrend has been observed for over ten months, and a small pullback at current levels is not ruled out.
Weekly Candle and Moving Averages
Trader Daan Crypto Trades noted Bitcoin's attempt to establish itself above the bull market support band and the weekly 200-period Exponential Moving Average (EMA). He emphasized the significance of the horizontal $73,000–$74,000 level: a sustained move above this zone, in his opinion, would increase confidence in a move towards the May highs. At the same time, he suggested waiting for the close of the current weekly candle at or above the reached levels—this alone would already be a positive signal.
Key Levels
$70,000 — The level above which analysts believe the bullish scenario remains intact.
$73,000–$74,000 — The horizontal resistance level highlighted by Daan Crypto Trades.
$79,000 — The level reached on August 21.
$83,000 — The next potential target according to Crypto Candy's assessment.
Thus, several traders agree that the key reference point for further movement remains the $73,000–$74,000 zone, while further targets along the current trend lie in the $80,000–$83,000 range.
Analysts also acknowledge the possibility of a short-term correction following such a sharp move, while noting that the overall chart structure—from the weekly close above the 200 EMA to the bullish divergence—continues to point to the persistence of the uptrend.
AI Perspective
From the perspective of machine data analysis, Bitcoin's current jump to $79,000 resembles the structure of events from a year ago. The asset already broke through the $70,000 mark on a wave of a similar short squeeze on August 20, and a parallel with the summer of 2021 shows that short liquidations then also exceeded $1 billion per day, after which the price corrected by almost 20% from the local peak. Such episodes often turn out to be temporary impulses rather than definitive trend reversals.
A technical aspect that remained unaddressed in the article is the derivative nature of such rallies. Analysts at Hash Telegraph have previously noted that sharp spikes amid mass liquidations often reflect the effect of cascading position closures rather than a genuine breakout driven by spot market demand. Will the current momentum persist after the weekly candle closes, or will the market return to test the $73,000–$74,000 zone?
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