- Bitcoin climbed to $103,771, standing just 4.9% below its January peak of $109,114.
- Short liquidations at $97,000 and $101,000 cleared $600 million, triggering rapid price increases.
- Binance funding rate flipped positive to +0.01% as bullish market signals began emerging again.
Bitcoin surged past $100,000 on May 8, reaching this threshold for the first time in months. Trading at $103,771, the leading cryptocurrency is up 0.75% on the day and is now just 4.9% below its record high of $109,114 set in January. Over the last seven days, it has climbed 7.05%, reflecting a shift after weeks of trading between $93,000 and $98,000.
The recent upward move was fueled by a series of short liquidation events on Binance, according to CryptoQuant contributor Amr Taha. He explained that a large cluster of short positions had built up over recent days, setting the stage for a short squeeze.
The first large-scale liquidation occurred at the $97,000 mark, wiping approximately $360 million in short positions.This forced many traders who bet against Bitcoin to cover their positions as the price broke through their expected ceiling.
Bitcoin Shorts Wiped in Two Waves
Bitcoin then briefly hovered below $101,000 before encountering another wave of liquidations once the price exceeded that mark, clearing an additional $240 million in shorts. This second round of forced closures pushed the price toward $104,000.
Taha pointed to Binance’s liquidation heatmaps that had shown high activity zones at both $97,000 and $101,000. These levels attracted heavy liquidations, confirming those areas were key for triggering a stronger price breakout.
Alongside the price movement, Binance’s funding rate turned positive after a wave of liquidations. Taha noted that earlier it had been negative, meaning traders were paying to bet against Bitcoin. After the liquidations, it rose to +0.01%, hinting at stronger demand for long positions. That shift shows traders may be gaining short-term confidence in a price rebound.
Bitcoin Bull-Bear Indicator Flashes Green
Another CryptoQuant analyst, burakkemeci, highlights signs of a Bitcoin trend reversal, pointing to the Bull-Bear Market Cycle indicator. ‘With Bitcoin surging back above $100K, the indicator has started flashing bullish signals again,’ he said.
Although the current signal remains weak, with a coefficient measured at 0.029, Burakkemeci views even a minor positive shift as an encouraging development.
The indicator evaluates long-term and short-term sentiment by comparing price momentum with investor behavior through the 30-day and 365-day moving averages.
Burakkemeci noted that the 30-day average is starting to slope upwards. If it crosses above the 365-day average, it could signal the start of a strong upward phase, following patterns seen in previous cycles.
These technical signals and market reactions together point to renewed optimism among traders and analysts. While the positive funding rate and liquidation-driven surge indicate confidence, the appearance of a bullish shift in the market cycle indicator adds weight to expectations of more gains ahead.
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