Bitcoin Climbs to US$63,450 Amid Short Squeeze, Traders Eye Monday Sell-Off Pattern

Bitcoin climbed to US$63,450 on Saturday before settling near US$62,700, the level of its 200-week moving average. The advance resulted from a short squeeze that forced roughly US$167 million in crypto positions to liquidate over 24 hours, according to CoinGlass data. Traders noted that the past seven Mondays have all delivered sell-offs, raising questions about whether the rally will hold through the new week. The 200-week simple moving average serves as a long-term trend line analysts treat as a battleground between buyers and sellers.

Short Squeeze Drives US$167 Million in Liquidations

The weekend price movement owed less to fresh buying than to traders being forced out of bearish bets. Roughly US$167 million in crypto positions were liquidated over 24 hours, according to CoinGlass data, as rising prices triggered forced covering. The token reached US$63,450 on Saturday amid thin order books over a three-day US holiday weekend.

Trader Daan Crypto Trades described the move as a "classic short squeeze, price grinds higher into a level everyone's shorting until forced covering does the rest." Daan Crypto Trades questioned whether the 200-week average would now hold as support. Fellow trader Exitpump flagged "stronger passive supply here pressing price from above," indicating sellers remained active at higher levels.

Traders Flag Seven-Monday Sell-Off Pattern

The past seven Mondays have all delivered sell-offs, leaving the market split on whether the rally survives the new week. Squeezes of this kind can lift prices sharply in hours, but they leave the rally resting on closed shorts rather than new conviction. Analysts treat the follow-through as more telling than the initial spike.

Federal Reserve Rate Decision Priced at 80% Hold Probability

Markets are pricing in roughly an 80% chance the Federal Reserve holds rates at its July 29 meeting. This backdrop has historically favoured risk assets.

FAQ

What caused Bitcoin to climb to US$63,450 on Saturday? Bitcoin's climb to US$63,450 on Saturday resulted from a short squeeze that forced roughly US$167 million in crypto positions to liquidate over 24 hours, according to CoinGlass data. Rising prices triggered forced covering of bearish bets.

Why are traders concerned about Monday after Bitcoin's weekend rally? Traders noted that the past seven Mondays have all delivered sell-offs. This pattern leaves the market split on whether the rally will hold through the new week, as squeezes leave rallies resting on closed shorts rather than new conviction.

What is the significance of Bitcoin's US$62,700 level? The US$62,700 level marks Bitcoin's 200-week simple moving average, a long-term trend line analysts treat as a battleground between buyers and sellers. Bitcoin settled near this level after reaching US$63,450 on Saturday.