Bitcoin Bounces 7.5% to $63,800, Liquidates $540M in Shorts, but Experts Cautious
Bitcoin recovered over the weekend, rising 7.5% from a low of $59,353 on Friday to a high of $63,800 on Monday, according to CoinGecko. The bounce triggered massive liquidations of short positions, with $539 million in crypto shorts liquidated on Sunday, the highest since mid-April, per CoinGlass. Over 24 hours, total liquidations surpassed $588 million. However, experts remain cautious, citing that the rally does not confirm a trend reversal. The selloff was not limited to crypto; the S&P 500 fell 2.90% on Friday, and South Korea's KOSPI dropped over 8% on Monday, triggering a circuit breaker. Macroeconomic factors and geopolitical tensions in the Middle East contributed to the broader risk asset pressure. Bitcoin's open interest fell sharply from 285,000 BTC to 255,000 BTC, suggesting a short squeeze, and the Coinbase premium index remains negative, indicating weak U.S. demand. The Crypto Fear and Greed index dropped to 8, the lowest since February 2026, and prediction markets place a 73% chance of Bitcoin dropping to $55,000. Spot Bitcoin ETFs saw $1.72 billion in outflows last week, and Bitcoin fell below its 200-day SMA, a bearish signal. Experts view the rebound as a relief move, not a confirmed turn.
Key facts
- Bitcoin rose 7.5% from $59,353 to $63,800 over the weekend.
- $539 million in short positions liquidated on Sunday, highest since April.
- Open interest dropped from 285,000 to 255,000 BTC, indicating a short squeeze.
- Crypto Fear and Greed index fell to 8, lowest since February 2026.
- Spot Bitcoin ETFs saw $1.72 billion outflows last week.