Bitcoin spike triggers $826 million in liquidations as leverage and geopolitical relief fuel rally
Massive liquidations as bitcoin hits 10‑week high
Nearly $826 million in leveraged crypto positions were wiped out in the past 24 hours after bitcoin jumped above $78,000, reaching its highest level in about 10 weeks.
Data shows $660 million of those liquidations came from short positions, underscoring how heavily the market had been positioned against further gains. Bitcoin shorts accounted for $353 million and ether shorts for $160 million. The largest single loss was a $15.75 million BTC‑USDT short on a derivatives platform.
The liquidation cascade removed a large block of bearish positioning, clearing a key obstacle to higher prices and accelerating the upside move.
Geopolitical easing aligns with sharp sentiment shift
The rally coincided with reports of easing geopolitical tensions in the Middle East. Former U.S. President Donald Trump was reported as saying a potential peace deal with Iran was “mostly complete” and that Iran had agreed to suspend its nuclear program.
Comments that the Strait of Hormuz would remain open for “full passage” were seen as a sign of reduced economic and energy‑related risk. Digital assets reacted quickly, with the shift in geopolitical tone aligning with the abrupt unwind of bearish crypto bets.
Leverage returns as futures open interest climbs
The price spike pushed aggregate bitcoin futures open interest up roughly 13% over the same 24‑hour window, signaling a renewed appetite for leveraged exposure.
Ask liquidity between $77,500 and $78,000 was absorbed as bitcoin printed its intraday high on Friday, according to data from Hyblock. By April 17, open interest in bitcoin derivatives had risen to its highest level since early 2026. On Binance alone, open interest expanded by about $1.33 billion, pointing to substantial capital rotating back into the market.
Key technical signal flashes from record low levels
On the technical side, bitcoin’s weekly moving average convergence divergence (MACD) indicator flashed a buy signal, a crossover that many chart watchers monitor for major trend shifts.
The MACD, which gauges momentum and trend direction, had fallen to its lowest reading on record before turning higher and forming a bullish cross. Historically, similar weekly crossovers have preceded sharp rallies.
The previous weekly MACD buy signal in 2022 was followed by a roughly 376% advance in bitcoin over the ensuing months. According to The Chart Report, this type of crossover has delivered a 93% win rate and a median 12‑month gain of 195% across past occurrences.
Because this latest signal emerged from such depressed levels, many technical analysts view it as particularly significant when assessing the potential for further upside.
Price targets shift higher, but signals are mixed
With shorts flushed out and leverage building again, some market analysts now see room for bitcoin to test higher resistance areas, with several commenting on potential upside targets around the $90,000 region if momentum persists.
However, not all underlying data is uniformly bullish. Hourly bitcoin inflows to centralized exchanges recently spiked to about 11,000 BTC, the highest reading since December, suggesting some holders may be positioning to take profits or reduce risk.
At the same time, spot bitcoin exchange‑traded funds continued to attract demand, recording a third consecutive day of net inflows and absorbing part of the additional supply moving onto exchanges.
The combination of renewed leverage, a powerful short squeeze, an historically strong technical signal, and easing geopolitical tensions has shifted the near‑term outlook firmly to the upside, even as on‑chain and flow metrics still point to an environment where volatility remains elevated and sentiment can turn quickly.
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